- GBP/USD bulls are taking on the bears with eyes towards a 50% mean reversion.
- The 38.2% Fibo comes in as the first upside target.
The bears could be throwing in the towel here in Tokyo as the US dollar starts to fall away. However, it is early days in the equities session in Asia still and it is yet to be seen if a high is being cut out currently or if a low is in place.
Instruction, the following illustrates a bullish bias in the case of a break of resistance and a move in towards the price imbalances that have a confluence of the 38.2% and 50% ratio retracements of the bear’s tracks from overnight.
GBP/USD H1 chart
A move higher to mitigate the price imbalances could potentially lead to a test below the 1.2000 psychological level which could equate to a 25 pip run higher where bears could be lurking. If the bears were to commit to the course, then a downside extension could be on the cards for the forthcoming days.