Recently, strong bullish pressure was applied at the resistance level of 1.5800 via the recent bullish swing.
That is why the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.
Later, the support level of 1.5555 got breached by the end of the previous month due to excessive bearish pressure, which originated at 1.5800.
The GBP/USD pair moved towards the support zone of 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection on October 6.
Conservative traders were advised to wait for a bullish pullback towards the level of 1.5480 for a low-risk sell entry.
This sell position was triggered last week. T/P levels to be located at 1.5330, then 1.5150. S/L should be lowered to 1.5410 to offset some of associated risk.
Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the levels of 1.5100 and 1.5050. Otherwise, further bullish correction towards 1.5400 and 1.5450 should not be excluded.
The material has been provided by InstaForex Company – www.instaforex.com