Previously, the GBP/USD pair found temporary DEMAND around 1.5550 where many lows were established back in November 2014.
The DAILY outlook looked quite bullish while bulls were defending the lower limit of the consolidation range around 1.5550 for many successive weeks.
However, a bearish breakout is now being expressed after successive unsuccessful attempts back in 2014.
Now we are seeing a bearish flag pattern similar to what happened back in October provided that the market does not reach above 1.5550-1.5570 (recent SUPPLY zone).
Projection target would be located around the price level of 1.5350.
Consolidation movement ranging between the price levels of 1.5770 and 1.5550 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. The bears have already reached price level of 1.5440 that hasn't been visited since August 2013.
Potential projection target for this range breakout pattern should be located around 1.5330-1.5350.
On the other hand, 4H re-fixation above 1.5550 temporarily pauses the current bearish trend exposing higher SUPPLY levels (initially 1.5650) to be retested first.
The material has been provided by InstaForex Company - www.instaforex.com
