Previously around 61.8% - 50% Fibonacci levels ( Price zone between 1.6240 and 1.6350 ), a long-term bearish trend was initiated almost two months ago.
The market successfully pushed below 1.6100 shortly after. Prominent bullish DEMAND existed around price zone of 1.5940 - 1.5880. This paused the bearish momentum for almost 20 days before it was resumed.
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.
This week, conservative traders were instructed to wait for a bullish pull-back towards 1.5820-1.5860 for a low-risk SELL entry.This position was triggered Yesterday as anticipated. It's already running in profits now.
Stop Loss should be lowered to 1.5860 ( slightly above entry levels ). This is now a risk-free position.
Price level of 1.5650 is the first target where profits should be taken until the next destination of the pair gets clear.
The material has been provided by InstaForex Company - www.instaforex.com
