Evident bullish recovery emerged from the area around 1.4550 where a significant bullish engulfing weekly candlestick was expressed.
As mentioned before, persistence above the levels of 1.5000-1.5080 exposed the weekly supply zone of 1.5500-1.5550 (roughly corresponding to weekly 50% Fibonacci level), where significant bearish pressure was previously applied on February 22.
Last week, the market has already pushed above the weekly supply at 1.5530 (50% Fibo level) and further above 1.5720 (FE 100%). However, evident bearish pressure was applied around 1.5800, resulting in the depicted bearish engulfing weekly candlestick.
Note that persistence below the weekly supply at 1.5530 (corresponding to 50% Fibo level) hinders the ongoing bullish trend for sometime.
Sideways movement with a slight bearish tendency had been expressed on the daily chart until the bullish breakout took place above 1.4970-1.5000 (via a long-term bullish reversal pattern).
The price zone between 1.5000 and 1.5050 (daily 38.2% and 50% Fibonacci levels) failed to hold. Moreover, it constitutes a prominent demand level for the GBP/USD pair now.
It offered a valid buy entry for retesting that took place last week.
A daily closure above the weekly supply zone of 1.5500-1.5530 exposed the next supply level located at 1.5720 (100% Fibonacci Expansion of the recent bullish swing).
Evident bearish pressure was applied around 1.5720 (100% FE and the upper limit of the depicted bullish channel). So, a bearish pullback took place towards 1.5500 on Tuesday.
Bearish breakout off the depicted bullish channel took place on Friday as a result of the evident bearish pressure that emerged at the level of 1.5660.
Persistence below 1.5530 (lower limit of the broken channel) is needed to pursue towards lower levels.
Initial bearish targets would be located at 1.5250 and possibly 1.5100 if enough bearish momentum is expressed.
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