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 of 1.6800 - 1.6820 failed to provide support too. Thus, maintaining the downside movement within the depicted chart.
The current bearish destination is located around 1.6400-1.6385 which has been hit earlier today. (Price level of 1.6390 corresponds to the depicted channel lower limit).
In case bulls maintain the current daily closure in the form of a "bullish hammer daily candlestick", bullish breakout is likely to occur this week.
Otherwise, sustained bearish pressure will expose the price levels around 1.6315 for retesting. It's the nearest daily support to meet the pair ( previous prominent daily bottom ).
The material has been provided by InstaForex Company - www.instaforex.com
