Previously around 61.8% - 50% Fibonacci levels ( Price zone between 1.6240 and 1.6350 ), a short position was offered and it got triggered few days later. The market successfully pushed below 1.6100 shortly after.
Prominent bullish DEMAND existed around price zone of 1.5940 - 1.5880. Bullish engulfing daily candlesticks emerging off these levels paused the bearish momentum for a few days.
Then, price zone of 1.6100-1.6140 constituted a prominent SUPPLY zone. The pair has moved sideways until recent bearish breakout took place.
Daily fixation below 1.5870 has put further bearish pressure on the pair to reach 1.5780, 1.5700 and 1.5650 where the back side of the mentioned bearish channel is located.
The previous daily candlesticks represented intraday DEMAND offered around 1.5650 after such a strong bearish momentum. Sideway movement has been taking place for a whole week.
Today, the market is pushing above 1.5800 further beyond the downtrend line that has been respected for 20 days now. The GBP/USD pair has a solid Intraday SUPPLY around 1.5800-1.5820 where many important Fibonacci Levels are located.
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
Last week, the bears managed to break below the recent low around 1.5790. This exposed the potential target at 1.5700 and 1.5650 where the backside of the broken channel is roughly located.
As anticipated, risky traders could have taken a BUY position around 1.5600-1.5650. It has achieved most of its targets by now.
Conservative traders are waiting for a bullish pull-back towards 1.5820-1.5860 for a low-risk SELL entry with Stop Loss located just above 1.5900.
The material has been provided by InstaForex Company - www.instaforex.com
