• GBP/USD bears are licking their lips for the open next week.
• Supply structure is testing bearish commitments.

As per the prior analysis, GBP/USD Price Analysis: Bears are waiting to pounce below 1.2800 we have seen a classic squeeze to end the month as follows:

GBP/USD prior analysis

GBP/USD daily chart

It was noted that the daily chart showed the price structure as an M-formation. The neckline was regarded as a resistance area around 1.2770/1.2800. Wednesday was expected to be a sell-off to below the lows of the week's initial balance which left trendline support vulnerable looking ahead.

GBP/USD update

The price moved into a demand area and subsequently reverted to the support area. We are now testing dynamic resistance and set for the week ahead.

While the impulse is strong, the 78.6% holds. Bears will be looking for a deceleration on the lower time frames for a reversion in the impulse. A break of the lower lows opes risk into the 1.2550s.