After having few indecisive movements last week, the pair reacted strongly towards the price level of 1.6160 pushing the pair to test 1.6300 – 1.6350 zone.
Last Friday, the GBP/USD pair almost reached the price level of 1.6300 when the market reacted strongly bearish which was manifested in the daily bearish Hammer candlestick which strongly suggests an upcoming bearish retracement towards retesting of the broken long-term trend line around 1.6150-1.6100.
The GBP/USD pair has been trapped within consolidation range 1.6160-1.6300 which was broken down on Wednesday after showing a bearish Head & Shoulders reversal pattern on the 4H chart which enables 1.6060 in the short-term as long as the pair is trading below 1.6200.
Support: 1.6230, 1.6200, 1.6180, 1.6150, 1.6125 and 1.6075.
Resistance: 1.6250, 1.6285, 1.6300, 1.6350 and 1.6390.
Intraday support is seen around 1.6160. However, an obvious break below that level could lead the price to neutral zone in nearest term testing 1.6130-1.6050, while a longer-term support is seen around price level of 1.5920 (50% Fibonacci Level).
The long-term view remains bullish as long as we have daily closure above the broken long-term trend line depicted on the chart.
The material has been provided by Instaforex Company - instaforex.com
