Last week, the GBP/USD pair found intraday DEMAND around 1.5550 where many lows were previously established back in November.
The DAILY outlook favors the bullish scenario initially towards 1.5800 then 1.6100 provided that bulls keep defending the lower limit of the current consolidation range around 1.5550.
On the long term, multiple bottoms were established above 1.5550-1.5580, rendering it a prominent DEMAND zone.
Another less probable scenario: a bearish flag pattern that waits for a bearish breakout below 1.5550 (similar to what happened back in October).
The current outlook is bearish on the 4H chart. Successive lower highs and lows are have been established.
Recently, a consolidation movement ranging between price levels of 1.5770 and 1.5550 took place.
Intraday traders should wait for bullish pull-back towards the recent SUPPLY zone located around 1.5775-1.5810.
Risky traders should note that bearish breakout below 1.5550 directly exposes potential bearish projection targets around 1.1530.
The material has been provided by InstaForex Company – www.instaforex.com