A Shooting Star daily candlestick occurred previously around 61.8% - 50% Fibonacci levels. A valid SELL position was suggested then and it got triggered few days later. The market successfully pushed below 1.6100 shortly after.
Bullish rejection was once expressed when the market pushed below 1.6100 and 1.6060 on September 9. However, another bearish leg was expressed below 1.6060 during the current month.
On the other hand, the price zone of 1.6100-1.6140 constituted a prominent SUPPLY zone where considerable bearish pressure was applied on the pair.
On Wednesday, bullish recovery was expressed off 1.5880. Bullish engulfing daily candlestick is depicted on the chart. Bullish targets were located around the price zone of 1.6130-1.6180 ( already reached ).
Bullish breakout off the depicted bearish channel is apparent on the daily chart. A bullish corrective move towards 1.6300 may occur as long as bulls keep moving above the upper limit of the channel.
Breakout above price level of 1.6140 ( being tested today ) is essential to confirm this suggested position. Otherwise, the pair remains under bearish pressure to revisit 1.5880 at least.
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
This week, bulls managed to push beyond the upper limit of the channel as well as previous broken bottom (probably now acting as resistance).
The GBP/USD pair remains trapped between the backside of the channel (1.6020) and price level of 1.6140.
Breakout in either direction is necessary to take a position in the same direction of breakout ( bullish breakout is more anticipated ).
A BUY entry was suggested around 1.6010-1.6020. It's running in profits now. Stop Loss should be located at 1.5980.
A higher risk entry is suggested after fixation above 1.6140-1.6180 takes place. Bulls have been trying to do so for the past couple of days without success yet.
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