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 trend 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 to 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.
On the other hand, a valid sell entry was suggested around the depicted resistance zone of 1.5470-1.5540 with Stop Loss located above the level of 1.5580 (mid-range of the consolidation zone).
The current support zone for the GBP/USD pair is located at 1.5200-1.5170 where a valid intraday buy entry can be offered if enough bullish rejection is expressed.
On the other hand, bearish persistence below the level of 1.5170 allows further bearish decline towards the level of 1.5130 initially and then towards 1.5050.
The material has been provided by InstaForex Company – www.instaforex.com