One month ago, the bears initiated a bearish trend off price levels around 1.7150-1.7190. Since then, the GBP/USD pair has been declining within the depicted bearish channel.
The price levels of 1.7050 - 1.7000 failed to provide enough support for the pair. Hence, the bears had a potential bearish target around 1.6970 and then 1.6920.
DAILY fixation below 1.6980-1.7000 applied intensive bearish pressure on the price zone of 1.6920-1.6900 leading to its breakdown as well.
Bullish recovery was evident around 1.6800 - 1.6820 manifested during the previous visit (Monday's daily candlestick)
However, this price zone failed to provide support during the 2nd visit that took place on Friday exposing the price level of 1.6765 for retesting.
Price levels around 1.6800-1.6820 offered a valid SELL entry. SL should be lowered to 1.6680 to secure our profits.
Bearish targets should have been reached initially around 1.6670, 1.6625 and 1.6580 where the lower limit of the ongoing bearish 4H channel is roughly located.
The next bearish destination is located around 1.6580-1.6550 in case the bears keep developing such bearish momentum. Price action action should be watched for a possible BUY entry.
The material has been provided by InstaForex Company - www.instaforex.com
