Overview:
The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with the projection target at 1.5300.
The market has already pushed further below reaching down to 1.5030-1.4980 where the lower limit of the channel has been providing support for the pair over the past few weeks.
The H4 chart shows transition into a sideway movement with mild bearish tendency which has been maintained within the depicted price range until evident bullish pressure was applied at retesting of 1.5000 last week.
Temporary bullish breakout above the upper limit of the short-term channel pattern (the price level of 1.5170) took place last week.
Persistence above the key-support (the price zone of 1.5170-1.5200) has applied bullish pressure over the price zone of 1.5290-1.5360 (prominent Fibonacci levels and the upper limit of the depicted movement channel) where bearish rejection was applied, as anticipated.
A bearish engulfing daily candlestick was expressed at retesting of the upper limit of the daily channel on Friday. Hence, the GBP/USD pair gets back to apply bearish pressure over the previously broken key-zone (1.5170-1.5200). There is a high probability of bearish breakdown.
Trading recommendations:
SELL entries were suggested around the price zone of 1.5290-1.5360. It's running in profits now. Hence, SL should be lowered to be slightly above 1.5270.
Look for the early signs of bullish reversal around the current prices (1.5200 - 1.5170). Bullish rejection signs would indicate an upcoming bullish swing with targets further above 1.5350.
The material has been provided by InstaForex Company - www.instaforex.com
