• GBP/USD bulls in the market and eye 1.2500. 
• Bears will be looking for a deceleration of the rally. 

As per the prior day´s analysis, GBP/USD Price Analysis: Bulls meet key resistance, bears lurking, whereby the price was anticipated to continue forming the right-hand shoulder of the head and shoulders, we have seen just that. 

GBP/USD prior analysis

It was stated that the price has rallied into a high-volume candle and had met resistance. This left the meanwhile focus on a correction into the 1.2370s and then the trendline support into the congestion towards 1.2350. Bulls were anticipated to be encouraged to reengage at a discount and that might have been the fuel for the next bullish impulse for a higher high within the right-hand shoulder.

GBP/USD updates

We have seen just that and now the focus is back on the downside. However, there is room to go yet as the equal highs could be mitigated first:

The W-formation would be a reversion pattern, should it come to fruition as the price continues towards 1.2500.