Previously at the Price zone (1.6350-1.6410), the current long-term bearish trend was initiated almost two months ago.
Price zone of 1.6100-1.6140 constituted a solid SUPPLY zone. On the other side, prominent bullish DEMAND existed around price zone of 1.5940 - 1.5890.
Hence, the pair was trapped between 1.6100 and 1.5890 for almost 20 days before bearish breakout could take place.
Daily fixation below 1.5870 has put further bearish pressure on the pair to reach 1.5620-1.5650 where a prominent consolidation zone was established above.
The market was showing indecision between 1.5600 and 1.5760 until bearish breakout took place on Friday ( ended up to a Full-body bearish candlestick ).
Now the GBP/USD pair should find Intraday SUPPLY around 1.5600-1.5640 where many recent lows were previously established back in November.
4H chart reveals the recent downside movement maintained within the limits of the depicted channel.
Conservative traders should wait for a pull-back towards price level of 1.5630 for a low-risk SELL entry. Stop Loss should be located at 1.5720.
On the other hand, an obvious 4H fixation below the triple-bottom price zone (1.5600 - 1.5590 ) 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
