Overview:
Recently, the strong bullish pressure was applied at the resistance level of 1.5800 via the recent bullish swing.
Hence, the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.
Later, the support level of 1.5555 got breached by the end of September, due to the excessive bearish pressure, which originated at 1.5800.
The GBP/USD pair moved towards the support zone of 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection, which took place on October 6.
Note that bearish persistence below the level of 1.5200 was needed for a further bearish decline towards the levels of 1.5000 (prominent weekly support). However, a bullish breakout above 1.5200 has been expressed since Tuesday.
Bullish fixation above the price zone of 1.5200-1.5250 allows bullish movement towards 1.5350 where the upper limit of the depicted channel comes to meet the GBP/USD pair.
A valid sell entry can be offered around the price levels of 1.5350. S/L can be set as daily closure above 1.5410.
The material has been provided by InstaForex Company - www.instaforex.com