On March 2, a bearish breakout of the lower limit of the previous daily channel occurred enhancing the bearish side of the market.
Persistence below the zone between 1.4950 and 1.5000 indicated a further bearish decline towards 1.4700.
Shortly after, 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 a valid sell entry. The final bearish target at 1.5450 was already reached.
Recently, higher bottoms were established around the levels of 1.5200. This initiated the current bullish swing towards the level of 1.5800.
The resistance level at 1.5800 was breached by the ongoing strong bullish momentum. Hence, GBP/USD bulls pursue towards 100% Fibonacci Expansion located around 1.5900.
Traders can take a valid sell entry anywhere around 1.5900-1.5930. Initial T/P levels are located at 1.5780, 1.5700 and 1.5600 while S/L should be set above 1.5950.
The material has been provided by InstaForex Company – www.instaforex.com