On April 9, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was reached. That is where the depicted bullish swing was initiated.
The next bullish swing extended up to the levels of 1.5750-1.5800, which offered valid sell entries for risky traders (depicted with red numbers).
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 pattern was confirmed.
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 nearest support zone to meet the GBP/USD pair was located at 1.5200-1.5170 where a valid Intraday buy entry was suggested then.
On the other hand, a valid sell entry can be offered around the current resistance zone of 1.5470-1.5540 as long as the market keeps defending the price level of 1.5580 (mid-range of the consolidation zone).
Note that persistence below the price levels of 1.5450 (lower limit of the depicted consolidation range) and 1.5350 (Recent Weekly Bottom) is mandatory to allow further bearish decline initially towards the price level of 1.5350.
The material has been provided by InstaForex Company – www.instaforex.com