On March 2, bearish breakdown of the lower limit of the previous daily channel occurred enhancing the bearish side of the market.
Persistence below the zone of 1.4950-1.5000 indicated a further bearish decline.
Initial projection target for this bearish breakout was located at 1.4700. Shortly after, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established.
Evident bullish recovery emerged at 1.4560 pushing the GBP/USD pair above the level of 1.4700. Since then, successive higher highs have been established on the H4 chart.
As anticipated, daily closure above 1.5060 (50% Fibonacci level) ended the ongoing bearish momentum. This exposed the next resistance levels at 1.5350 and 1.5400 (upper limit of the ongoing H4 channel).
In the short term, the zone of 1.5240-1.5200 (lower limit of the H4 channel and previous consolidation range) constitutes a prominent intraday support to be watched today for bullish reversal signs.
On the other hand, the level of 1.5050 remains the most prominent support level to watch for long-term buy entries (corresponds to 50% Fibonacci level and the previous consolidation range's upper limit)
Persistence below 1.5400 (the upper limit of the H4 channel and previous prominent resistance) enhances the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5150 if enough bearish momentum is expressed below 1.5240.
The material has been provided by InstaForex Company – www.instaforex.com