Considering The Hourly Chart of GBP/USD currency pair and the associated Linear Regression Channels:
GBP/USD has the shorter-term Violet & Blue channels which are bearish while the longer-term Yellow channel is still transverse tending to be slightly bullish.
Yesterday we suggested Selling the GBP/USD at 1.6245 which acted as an effective resistance level being successful to push the pair down to 1.6185 in short time. However, GBP/USD showed significant price action towards 1.6185 which corresponds roughly to the lower limit of the Yellow & Blue channels.
The GBP/USD is now testing the resistance area corresponding to the intermediate line of the Yellow channel & the upper limit of both Violet and Blue channels ranging between 1.6230-1.6245.
Success of the GBP/USD to breakthrough 1.6230-1.6245 paves the way for the GBP/USD pair to visit the upper limit of the Yellow channel located at 1.6290-1.6300.
Price levels 1.6290-1.6300 are expected to act as solid Intraday Resistance Levels pushing the pair to lower targets. However, Earlier breakdown of the lower limit 1.6180 will probably resume the bearish scenario towards 1.6150 and 1.6085.
Based on the previous analysis
The Market offers a low risk/reward SELL entry at 1.6290-1.6300 with TP levels at 1.6250,1.6150 then 1.6100 while SL should be located above 1.6350.
The Market offers a high risk/reward SELL entry On Bearish Closure below Price Level 1.6180 with TP levels at 1.6150 & 1.6100 while SL should be located above 1.6250.
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The material has been provided by Instaforex Company - instaforex.com
