Overview:
Recently, strong bullish pressure was applied to the resistance level of 1.5800 via the recent bullish swing.
That is why, the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.
Later on, the support level of 1.5555 got breached by the end of the previous month due to excessive bearish pressure, which originated at 1.5800.
The GBP/USD pair moved towards the support zone of 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection on October 6.
Conservative traders are advised to wait for a bullish pullback towards the price level of 1.5470 for a low-risk sell entry.This price level is being approached today. Price reaction should be watched for a valid short position.
Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the level of 1.5100 and then towards 1.5050 (bearish Flag projection target).
The material has been provided by InstaForex Company - www.instaforex.com