GBP/USD Price Analysis: Bulls monitoring for a switch in the trajectory

• GBP/USD's monthly bid is in focus with bulls seeking a weekly bullish close.
• Thee 4-hour time frame can be monitored for a bullish environment and switch up from support. 

GBP/USD is currently in the hands of the bears, but a switch-up on the shorter-term time frames open up prospects for a high probability bullish setup.

The following illustrates where the opportunity could arise if the 4-hour conditions flip bullish with price travelling back above the current resistance structure from support.

Monthly chart

The monthly chart shows that the price has corrected a fresh monthly high and printed a deep Fibonacci retracement. 

In doing so, the price would be expected to run higher in a fresh bullish impulse. 

Weekly chart

Moving down to the weekly chart, with just one day and three hours to go, at the time of writing, until the close, bulls will be looking for a bullish close and a green candle, instead of the current bearish red candle.

Why?

Bulls will look for the next weekly candle to fill in the wick. 

The wick is essentially a correction of a bullish trend and higher highs on the daily candles as follows:

Daily chart

As can be seen, the latest bullish impulse was a series of bullish daily closes that resulted in a higher-high and break of the mid-October resistance. 

The market is in a bullish environment, as told by bullish MACD and with the price above the 21-day moving average. 

However, we have seen a very strong rejection, so the likelihood of a bullish weekly close is severely limited with so little time left to go. 

We would need to see the dollar sell-off significantly in the remaining sessions of the week:

(DXY daily chart at key resistance).

Nevertheless, a close above the structure would be suggestive of a bullish continuation, regardless of a weekly bearish close. It would just have reinforced the bullish bias but it is not essential for a bullish outcome. 

4-hour chart

From a 4-hour perspective, the price needs to hold at this current layer of support. 

In doing so, there is a high probability that the price will move in to test the bearish commitments at the next layer of resistance.

Bulls will seek a break and restest of this structure that would then be expected to hold and provide a trading opportunity to target a -272% Fibonacci of the daily correction's highs and lows.