On March 2, a bearish breakdown of the lower limit of the previous daily channel occurred enhancing the bearish side of the market.
Persistence below the zone of 1.4950-1.5000 indicated a further bearish decline towards 1.4700.
Shortly after, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established.
Evident bullish recovery emerged at 1.4560 pushing the GBP/USD pair above the level of 1.4700. Since then, successive higher highs have been established.
As anticipated, the daily closure above 1.5060 (50% Fibonacci level) exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied.
This enhanced the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5100 where the most recent bullish swing was initiated on May 5.
On the other hand, the price zone of 1.5750-1.5800 (critical resistance zone) offered a valid sell entry almost two weeks ago. Final bearish target at 1.5450 was already reached.
IIntraday Support-1 (price zone of 1.5400-1.5450) is the most prominent support level to be watched for buy entries. However, signs of strong bearish pressure are observed on the chart today.
Initial bullish targets would be located at 1.5650 then 1.5750 if the current support zone remains defended by bulls.
On the other hand, daily closure below 1.5400 (previous weekly bottom) invalidates this bullish scenario exposing the levels around 1.5300 and 1.5150 to be visited shortly after.
That’s why the current daily candlestick should be monitored by the end of today’s trading sessions.
The material has been provided by InstaForex Company – www.instaforex.com