Overview:
The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with projection target at 1.5300.
The market has already pushed further below, reaching down to 1.5030-1.4980 where the lower limit of the channel has been providing support for the pair over the past few weeks.
The H4 chart shows transition into a sideway movement with mild bearish tendency which has been maintained within the depicted channel until evident bullish pressure was applied at retesting of 1.5000 last week.
Temporary bullish breakout above the upper limit of the short-term flag pattern (price level of 1.5170) is taking place today.
Persistence above the key-support for today (price level of 1.5170) applies strong bullish pressure over the price zone of 1.5290-1.5360 (prominent Fibonacci levels) where the price action should be watched.
Trading recommendations:
Look for signs of bearish reversal around the price zone of 1.5290-1.5360 to SELL the GBP/USD pair with SL located slightly above 1.5380.
The material has been provided by InstaForex Company - www.instaforex.com
