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 towards 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.
As anticipated, daily closure above 1.5060 (50% Fibonacci level) exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied.
Persistence below 1.5300 (the lower limit of the H4 channel) enhanced the bearish side of the market towards the levels of 1.5300, 1.5250 and 1.5100 where a significant bullish swing was initiated on May 5.
Note that Intraday Support 1 (price level of 1.5400) is now the most prominent support level to be watched for buy entries when further bearish pullback occurs.
On the other hand, the price zone of 1.5750-1.5800 is a critical RESISTANCE zone to be watched for signs of bearish reversal and a possible SELL entry if enough bearish rejection is expressed.
The material has been provided by InstaForex Company – www.instaforex.com