As depicted on the chart, the GBP/USD pair was trapped between 1.5890 and 1.6100 for almost 20 days before bearish breakout could take place.
Daily fixation below 1.5870 led bearish pressure to the pair so that it reached the price level of 1.5600 where a new consolidation zone is being established above.
This week, the GBP/USD pair is finding intraday DEMAND around 1.5580-1.5550 where many recent lows were previously established back in November.
The current DAILY price action favors the bullish scenario initially towards 1.5800 provided that the bulls can fixate above 1.5720 soon enough.
The market is still reflecting indecision which may give some time for more sideway movement.
It is either a double-bottom reversal pattern being established above 1.5580 OR another bearish flag pattern that waits for bearish breakout below 1.5550 (similar to what happened back in October).
The 4H chart reveals the recent downside movement maintained within the limits of the depicted channel.
Conservative traders were waiting for a bullish pullback towards the price zone of 1.5680-1.5710 for a low-risk SELL entry. Stop Loss should be located at 1.5760.
Obvious 4H fixation below the current Fibonacci levels zone (1.5680 - 1.5700 ) indicates an upcoming bearish movement towards 1.5480-1.5500 where the lower limit of the current movement channel is located.
The material has been provided by InstaForex Company - www.instaforex.com
