Two weeks ago, the GBP/USD pair found intraday DEMAND around 1.5550 where many lows were previously established back in November.
Moreover, previous multiple bottoms were established above 1.5550-1.5580, rendering it a prominent DEMAND zone.
The DAILY outlook looked quite bullish while bulls were defending the lower limit of the consolidation range around 1.5550 for many successive weeks. However, a bearish breakout was expressed yesterday.
The bears have already reached down to 1.5485. Daily closure confirmed the bearish breakout.
Now we are seeing a bearish flag pattern similar to what happened back in October provided that the market does not reach above 1.5550 (recent SUPPLY level).
Projection target would be located around the price level of 1.5350.
A consolidation movement ranging between the price levels of 1.5770 and 1.5550 took place.
It represented the state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.
As anticipated, the bearish breakout below 1.5550 directly exposed lower targets. Potential projection target for this range breakout pattern should be located around 1.5330-1.5350.
On the other hand, conservative traders should wait for bullish pullback towards the prominent SUPPLY zone located around 1.5660 for a low-risk SHORT position.
The material has been provided by InstaForex Company - www.instaforex.com
