Overview:
On February 5, a transient bullish channel was established around the levels of 1.5170-1.5200.
Estimated target for this bullish channel was reached at 1.5550 where the previous daily bottoms were located (solid resistance level).
Then, a bearish breakdown of the lower limit of this channel occurred enhancing the bearish side of the market and confirming the Flag pattern as a bearish one.
A significant bearish pressure was applied at the levels of 1.5200 (R2), and 1.4950 (R1 = broken weekly bottom) leading to a quick breakdown.
Persistence below 1.4950 indicated further bearish decline. The initial projection target for this bearish breakout was located at 1.4700.
A bearish breakdown of 1.4700 enabled the pair to resume its bearish trend towards 1.4550 where a lower daily bottom was achieved (below 1.4700 which is the most recent bottom).
This week, evident bullish recovery originated around these levels pushing the GBP/USD pair above 1.4700 again looking for better prices to sell the pair off.
Currently, the bullish pullback towards 1.4950-1.5000 has already taken place (significant resistance zone) probably offering a low-risk short entry.
S/L should be set as a daily closure above 1.5025 while T/P levels should be placed at 1.4860, 1.4800 and 1.4720.
The material has been provided by InstaForex Company - www.instaforex.com
