Earlier, the market has established a consolidation zone around 1.5000, which extended up to 1.5280. This was followed by a transient uptrend maintained within the depicted channel.
Bulls managed to push the price towards higher levels, including 1.5550 (just below the weekly supply level) where significant bearish pressure was applied resulting in the formation of multiple bearish engulfing daily candlesticks.
Then, strong bullish rejection was expressed around 1.4700 (weekly low). A significant bullish weekly candlestick was expressed by the end of the week.
Shortly after, the price zone around 1.4960-1.5000 has provided evident supply for a few successive weeks. This price zone corresponds to 38.2% Fibonacci level as well as the previous weekly demand, which was broken back in January 2015.
Transient sideways movement with slight bearish tendency was being expressed on the daily chart. Contradictory candlesticks reflected indecision around the current price levels.
Yesterday, bearish breakdown of DAILY DEMAND LEVEL of 1.4700 took place. Projection target for this consolidation breakout would be located around the price levels of 1.4440.
The previous demand zone around 1.4960-1.5000 was breached three weeks ago resulting in a quick bearish decline towards 1.4700.
Evident bullish recovery was manifested on the H4 chart near the price level of 1.4700 (weekly low).
As mentioned before, fixation above 1.4700-1.4720 enhanced further bullish visits towards 1.5000.
Recently, the GBP/USD pair failed to trade above the level of 1.4970 as a flag pattern has been expressed since the initial visit of the price level of 1.5000.
Conservative traders should have noted that the GBP/USD pair remained trapped between 1.4700 and 1.4970 until bearish breakout took place yesterday.
Estimated bearish targets would be projected towards 1.4600,1.4500 then 1.4440.
The material has been provided by InstaForex Company - www.instaforex.com
