On April 9, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom (which initiated the ongoing bullish swing) was reached.
A daily closure above 1.5060 exposed the next resistance levels at 1.5400 and 1.5450 where a temporary bearish pullback took place on April 29.
The next bullish swing extended up to the levels of 1.5750-1.5800, which offered traders few valid sell entries (depicted with red arrows). The final bearish target at 1.5450 was already reached.
Recently, strong bullish pressure was applied against the resistance levels around 1.5800 via the ongoing bullish swing.
That is why the resistance level at 1.5800 was temporarily breached. Hence, GBP/USD bulls pursued towards 100% Fibonacci Expansion located around 1.5900 where the depicted successive lower highs were initiated.
Hence, the level of 1.5555 (prominent demand level/depicted uptrend line) got breached earlier this week due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.
The level of 1.5555 (prominent demand level/depicted uptrend line) got breached earlier last week due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.
As suggested in our previous articles, a bullish pullback towards 1.5550-1.5600 was expected to occur.
Our suggested sell entry around 1.5600 got triggered last week. It is still trading almost around entry levels. S/L should be set as a daily closure above 1.5650.
Early fixation below the level of 1.5550 is mandatory to pursue towards bearish targets, initially at 1.5450.
The material has been provided by InstaForex Company – www.instaforex.com