Two weeks ago, the GBP/USD pair found intraday DEMAND around 1.5550 where many lows were previously established back in November.
Moreover, previous multiple bottoms were established above 1.5550-1.5580, rendering it a prominent DEMAND zone.
The DAILY outlook looked quite bullish while bulls were defending the lower limit of the consolidation range around 1.5550 for many successive times.
However, a bearish breakout is being attempted today. The bears have already reached down to 1.5480. Daily closure should be watched for DAILY confirmation.
Now we expect to see a bearish flag pattern similar to what happened back in October. Projection target would be located around the price level of 1.5350.
A consolidation movement ranging between the price levels of 1.5770 and 1.5550 took place.
It represented the state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.
As anticipated, the bearish breakout below 1.5550 directly exposed lower targets. Potential projection target for this range breakout pattern should be located around 1.5330-1.5350.
On the other hand, intraday traders should wait for bullish pullback towards the recent SUPPLY zone located around 1.5600 for a low-risk SHORT position.
The material has been provided by InstaForex Company – www.instaforex.com