The weak bullish structure with integrated swings led to price fall. It happened last week during both Thursday and Friday after the upper limit of the movement channel 1.5590-1.5600 had provided a considerable resistance for the pair.
The GBP/USD pair broke down important support level 50% Fibonacci which came to meet the pair at 1.5315 with the lower limit of the depicted bullish channel which opened the way for the pair towards Fibo 61.8% located at 1.5245.
Shortly after, the GBP/USD pair established a consolidation range 1.5190-1.5267 around 1.5245 (61.8% Fibonacci). Bullish rejection pushed the pair again to test 1.5320 (Fibo 50%) where considerable bearish pressure was applied to the pair to re-close again below 1.5250 (61.8% Fibo).
Yesterday, Price Zone 1.5320-1.5340 provided a SELL entry which is running in profits now, It is adviced that SL should be lowered to 1.5290 to avoid possible reversals.
Failure of the GBP/USD pair to have 4H closure again above 1.5250, favours the bearish view towards 1.5150, then 1.5070.
The material has been provided by InstaForex Company – www.instaforex.com