GBP/USD Price Analysis: Bears waiting to pounce to target the 1.3550s

• GBP/USD bulls in control, but run into a wall of resistance. 
• Bears will be looking to engage once bearish confirmations have aligned. 

GBP/USD has reached higher in a strong correction of the prior daily trend but failures at this juncture open risk of a downside continuation for the days ahead. 

The bears will be monitoring for fresh bearish structures from which an optimal entry point could evelove. 

The following illustrates the daily market structure, the direction bias and ultimately where the price will need to clear in order for bears to engage in a higher probability set-up. 

GBP/USD daily market structure

The price is reaching towards a resistance trendline and the prior daily lows near 1.3790.

GBP/USD downside prospects

This resistance would be expected to hold and lead to a downside continuation as illustrated above. 

The downside target area is a -272% Fibonacci retracement of the current correction's range.

GBP/USD 4-hour chart

The 4-hour chart offers an entry point at the recent lows near 1.3695 that would be expected to be retested as a resistance level if the price does manage to break lower.

At that point, bears can be more confident in the market's bearish direction and a sell limit order would be filled on a retest. 

On the other hand, a sell stop below the level could be an alternative strategy to enter a falling market.