GBP/USD Price Analysis: Bulls are stepping in with significant correction eyed

• GBP/USD is stalling following last week's drop with corrections on the cards.
• The bears eye a deeper descent into the 2020 lows near 1.1400.

GBP/USD has been in free fall over the last three trading days, reaching a pivotal point around 1.1800. However. it has started to stall and there are prospects of a significant correction in the days ahead if the bears cannot get over the line. The following illustrates this on a daily chart and weekly charts.

GBP/USD daily chart

The M-formation is a reversion pattern and should the price be unable to break the lows then a correction could be on the cards towards the 38.2% Fibonacci of the recent drop from the mid-1.2050s. 

GBP/USD weekly chart

The weekly M-formation offers prospects of a far deeper correction into the neckline near 1.1993. Failing this scenario, however, given the close below prior structure, the bears will be in the runnings for a deeper descent into the 2020 lows near 1.1400.