One month ago, bears initiated a bearish trend off the 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, bears had an initial bearish target around 1.6800.
However, this price zone around 1.6800 failed to provide support too. Thus, the bears pursued the downside movement within the depicted chart.
The next bearish destination is located between price levels of 1.5900 and 1.6000 where a previous congestion zone was established in October 2013.
Sustained bearish pressure will expose the price levels around 1.6050, 1.6000 and 1.5920 for retesting. These levels are intraday support levels to meet the pair.
On the other hand, price zone of 1.6250-1.6320 constitutes a prominent resistance zone to offer a valid SELL entry at retesting. This price zone corresponds to the downtrend line initiated since July.
The material has been provided by InstaForex Company - www.instaforex.com
