On March 2, a 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, then successive higher highs were established.
As anticipated, the daily closure above 1.5060 exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied.
This enhanced the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5100 where the most recent bullish swing was initiated on May 5.
On the other hand, the price zone of 1.5750-1.5800 (critical resistance zone) offered a valid sell entry almost two weeks ago. Final bearish target at 1.5450 was already reached.
Moreover, a lower high was recently established at 1.5660 on Friday. That is why, the broken support zone (price zone of 1.5500-1.5450) failed to hold the current bearish momentum.
It should now be acting as an Intraday resistance when further retesting takes place.
On the other hand, price levels of 1.5150 and 1.5100 are now exposed to be visited very soon.
The nearest support zone to meet the pair is located around 1.5080-1.5100. It should be watched for low risk BUY entries. SL should be set as daily closure below 1.5080.
The material has been provided by InstaForex Company – www.instaforex.com