GBP/USD Price Analysis: 1.2100 under pressure ahead of key US CPI event

GBP/USD's 1.2170, 1.2150 and 1.2113 (daily W-formation neckline target area) areas were in focus.
Meanwhile, key structure target levels have either given out or are being tested, guarding against a full-on capitulation of the bulls.

As per the start of the week's technical analysis for GBP/USD, GBP/USD Price Analysis: Bullish impulse is decelerating, eyes on 1.2150, where the outlook has been bearish while below 1.2400 and 1.2220 nearer-term highs, cable has remained hamstrung to the downside as the following illustrates. Meanwhile, the US Consumer Price Index could be the catalyst to trigger a move below 1.2100 recent lows.

GBP/USD prior analysis

The market was on the back side of the recent supportive trendline at the start of the week and the price broke 1.1900 structure leaving a bearish bias on the charts.

Zoomed in...

The W-formation was supportive of the bearish thesis given that it is a reversion pattern. It was stated that GBP/USD would be expected to move in towards the neckline and day's lows of near 1.2080. So far, we have seen the price dishevelled to test 1.21 the figure and test the structure that guards against a run to the prior broken lows of 1.1900 and 1.1778 below there.

It was stated that the lower time frames can be monitored for a deceleration of the bullish run and signs of distribution as follows:

1.2170, 1.2150 and 1.2113 (daily W-formation neckline target area) areas were meanwhile key structure target levels that have either given out or are being tested, guarding against a full-on capitulation of the bulls and bears taking over towards the 1.1900 target area.

GBP/USD update, daily and H1 charts

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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