As depicted on the chart, the GBP/USD pair established a consolidation range above 1.5890 up to 1.6100 for almost 20 days before bearish breakout could take place early in November.
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.
Last 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 DAILY outlook favors the bullish scenario initially towards 1.5800 provided that the bulls can fixate above 1.5720 soon enough (it could not happen until now).
The market is still finding resistance around 1.5720 (the upper limit of the depicted channel) and it may give some time for more sideway movement.
On the long term, 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 consolidation movement maintained within the limits of the depicted channel.
On the short term, conservative traders were waiting for a bullish pullback towards the price zone of 1.5680-1.5710 for a low-risk SELL entry. It was triggered last week on Friday. It is running in profits now. Stop Loss should be lowered to 1.5720.
As anticipated, obvious 4H fixation below the current Fibonacci levels zone (1.5680 - 1.5700 ) indicated 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
