The previous consolidation movement extended between the price levels of 1.5600 and 1.5770. It represented a period of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.
Bearish breakout below 1.5550 directly exposed lower targets. Bears have already pushed towards the price levels of 1.5050 and 1.4960, which have not been visited since July 2013.
Around these price levels (1.5050 and 1.4960) the market has established another consolidation zone, which extended up to the price levels of 1.5280.
Last week, the ongoing bearish trend was invalidated on Thursday when bullish breakout above 1.5200 took place.
Estimated projection targets are located around 1.5600-1.5640 where the previous consolidation zone was located.
By the end of the last week, the GBP/USD pair has consolidated above the price zone of 1.5360 (61.8% Fibonacci level), which failed to provide enough SUPPLY for the pair.
For the current bullish breakout to happen, bulls should keep defending the price zone of 1.5300-1.5330.
Estimated projection targets for the recent bullish breakout are roughly located around 1.5600-1.5640.
On the other hand, conservative traders can wait for a low-risk BUY entry at retesting the price zone of 1.5300-1.5330 (backside of the broken channel and 50% Fibonacci level).
The material has been provided by InstaForex Company – www.instaforex.com