The GBP/USD pair has been trapped between 1.6100 and 1.5890 for almost 20 days before bearish breakout could take place.
Daily fixation below 1.5870 led bearish pressure on the pair so that it reached 1.5620-1.5650 where a prominent consolidation zone was established above.
This week, the GBP/USD pair is finding Intraday SUPPLY around 1.5580-1.5550 where many recent lows were previously established back in November.
The current price action favors the bullish scenario (initially towards 1.5800) as yesterday's bullish engulfing daily candlestick emerged off 1.5550 where the backside of the broken downtrend is located.
4H chart reveals the recent downside movement maintained within the limits of the depicted channel.
Conservative traders were waiting for a bullish pullback towards price zone of 1.5680-1.5710 for a low-risk SELL entry. Stop Loss should be located at 1.5740.
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
