The Daily chart depicted above shows that the GBP/USD pair could break its long-term downtrend line of January. Since then it has been trading within an uptrend despite some sideways consolidation in November and March.
Although the GBP/USD pair showed a significant bearish reaction towards 1.5950 - 1.6000 which gave some bearish expectations. The pair has failed to break through the level 1.5800 which allowed the bulls to make a strong push to the upside and break 50% & 61.8% Fibonacci levels at 1.5925 & 1.6090 respectively.
It is crucial that a short-term uptrend line was broken in the first week of April which was tested at 1.6125 last Friday which is expected to constitute a solid long-term resistance level at 1.6262 -1.6300 to prevent further bullish movement.
On the 4H chart, we see that the GBP/USD pair has recently broken the consoildation range between 1.6077-1.6145 with successful retesting which allowed the GBP/USD pair to resume its bullish movement towards 1.6262.
Also on the 4H chart, the GBP/USD pair is expected to test the upper limit of the depicted bullish channel at 1.6330 which is a solid Intraday resistance level.
Untill now there is no significant bearish reaction towards the mentioned resistance levels it is recommended to wait till we get bearish confirmation with 4H closure below 1.6262. However, SELLING the GBP/USD pair at 1.6330 is considered as a valid SELL entry without waiting for confirmation.
TP levels are to be located at 1.6250,1.6155 &1.6100 with SL as daily closure above 1.6385.
The material has been provided by Instaforex Company - instaforex.com
