On April 9, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was reached. This is where the depicted bullish swing was initiated.
The next bullish swing extended up to the levels of 1.5750-1.5800, which offered traders valid sell entries (depicted with red numbers).
Recently, strong bullish pressure was applied against the resistance level of 1.5800 via the most recent bullish swing.
That is why, the resistance level at 1.5800 was temporarily breached. Bulls pursued towards 1.5900 where the depicted Head and Shoulders pattern was confirmed.
The support level of 1.5555 got breached by the end of last month due to excessive bearish pressure which originated at 1.5800.
A valid SELL entry was suggested around the levels of 1.5780-1.5800. It is already running in profits now.
The nearest support level to meet the GBP/USD pair is located at 1.5250 where an Intraday BUY entry can be offered at retesting.
Persistence below the zone of 1.5450 (lower limit of the broken consolidation range) and 1.5350 (Recent Weekly Bottom) is essential maintain the bearish momentum.
Another SELL entry can be offered at retesting of the recent resistance level at 1.5470 (lower limit of the previous consolidation range) if bullish pullback occurs soon.
The material has been provided by InstaForex Company – www.instaforex.com