The market has previously established a consolidation zone around 1.4960 which extended up to 1.5280. This was followed by a transient uptrend maintained within the depicted channel.
Bulls managed to push towards higher levels including 1.5550 (just below the weekly supply level).
Significant bearish pressure was applied around 1.5550 resulting in formation of multiple bearish engulfing daily and weekly candlesticks.
Significant demand levels located around 1.5200 and 1.5000 were recently breached indicating a strong bearish tendency on the market.
Yesterday, significant bullish rejection was expressed around 1.4700 (WEEKLY LOW). A bullish engulfing DAILY candlestick was expressed by the end of the day.
As anticipated, the price zone of 1.4960-1.5000 was expected to provide significant SUPPLY for retesting. It comes to meet the upper limit of the long-term depicted channel.
Recently, the GBP/USD bulls failed to defend their demand zone around 1.4960-1.5000 which was breached last week.
Evident bullish recovery was manifested on the H4 chart near the price levels around 1.4700 (WEEKLY low).
Fixation above 1.4700-1.4720 is a must to enhance the bullish side of the market allowing a corrective movement to take place.
On the other hand, conservative traders should wait for a bullish pullback towards the price zone of 1.5970-1.5030 (prominent SUPPLY zone) for a low-risk sell entry. Stop loss should be located above 1.5130.
The GBP/USD pair remains trapped between 1.4700 and 1.4970 until breakout occurs in either direction.
The material has been provided by InstaForex Company - www.instaforex.com
