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 valid sell entries for risky traders (depicted with red numbers).
Recently, strong bullish pressure was applied at the resistance level of 1.5800 via the recent bullish swing.
That is why, the resistance level of 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 the previous 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 zone to meet the GBP/USD pair is located at 1.5200-1.5170 where an intraday buy entry can be offered if the current daily candlestick remains as a bullish engulfing one by the end of Today.
On the other hand, another sell entry can be offered for the recent resistance level at 1.5470 retesting (lower limit of the previous consolidation range) if the current bullish pullback persists above the level of 1.5330.
Persistence below the zones of 1.5450 (lower limit of the broken consolidation range) and 1.5350 (Recent Weekly Bottom) maintains bearish momentum.
The material has been provided by InstaForex Company – www.instaforex.com