The previous consolidation movement extended between the price levels of 1.5600 and 1.5770. It represented a period of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.
Bearish breakout below 1.5550 directly exposed lower targets. Bears have already pushed towards the price levels of 1.5050 and 1.4960 which have not been visited since July 2013.
Around these price levels (1.5050 and 1.4960) the market has established another consolidation zone, which extended up to the price levels of 1.5250-1.5280.
Last week, bearish scenario was threatened on Thursday when temporary bullish breakout took place. On Friday it was followed by a bearish engulfing daily candlestick that pushed the GBP/USD pair inside the channel again.
However, yesterday bullish breakout was finally executed above the price level of 1.5300. Estimated projection targets are located around 1.5600-1.5640 where the most recent consolidation zone is located.
Yesterday the GBP/USD pair has spiked above the price zone of 1.5280-1.5320 (prominent SUPPLY ZONE) which failed to provide enough SUPPLY for the pair.
The price level of 1.5300 corresponded to the upper limit of the depicted H4 channel as well as 50% Fibonacci level of the recent bearish swing that extended between 1.5600 and 1.4976.
The material has been provided by InstaForex Company - www.instaforex.com
