Bulls engage at fresh bear cycle lows

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• GBP/USD bulls comer up for air at key demand area.
• Bears need to stay committed on the front side of dynamic resistance. 

GBP/USD is down on the day and trading at 1.2330 currently. The pair has traveled from a high of 1.2387 to a low of 1.2308 so far. The price is moving into an area of potential support but while on the front side of the bearish trend, the bears are in control and there are prospects of a downside continuation if the bears commit. The following illustrates a couple of scenarios that respect the dynamic resistance lines and also the horizontal support area: 

GBP/USD H4 chart

The market has corrected and the question is whether the bears are going to stay committed.

If the bears engage again, we have the 38.2% Fibonacci and the 50% mean reversion resistance area that they could lean against.

On the flip side, if this area were to break, then the bulls will be taking over and the bullish schematic could unfold with the trendline resistance looking vulnerable.