The Linear Regression Channel Hourly chart for the GBP/USD currency pair reveals:
Last Thursday GBP/USD initiated a downside movement / trend, that has remained true within the depicted Yellow & Blue bearish channels until today.
Yesterday the situation was slightly different as failure of the GBP/USD pair to fixate below 1.5830 - the intraday support level - allowed the bulls to initiate bullish retracement towards the upper limit of the mentioned channels around 1.5900.
This retracement, initiated yesterday, is seen within the bullish violet channel depicted on the chart.
Price zone 1.5900 - 1.5920 corresponds to 50%, 61.8% Fibonacci levels as well as the upper limit of the longer-term channels mentioned above.
Hence price zone 1.5900 - 1.5920 constitutes a valid low-risk SELL entry with SL to be placed above 1.5955.
TP levels are to be placed at 1.5855, 1.5810 then 1.5770.
The material has been provided by Instaforex Company - instaforex.com
