Breakdown of Price Zone 1.5960-1.5940 lead to quick decline towards 1.5860-1.5840 which was broken too leading to price zone 1.5740-1.5760. Price Zone 1.5740 - 1.5760 corresponds to the lower limit of the Violet & Blue channels and also to the Average Daily Range which is indicative of possible bullish retracement coming after. The GBP/USD has shown extensive bearish decline yesterday exceeding the Average Daily range breaking its Intraday Support levels. However, today there are signs of bullish recovery manifested in breaking the upper limit of the Yellow channel. There's a possible Head and shoulders being formed with head at 1.5730 which becomes confirmed with bullish closure above neck-line located at 1.5825 to be targeting to the price level of 1.5925.
Based on the previous analysis
The market offers a bullish opportunity at price level 1.5770 with a tight Stop Loss below 1.5730.
TP levels are to be located at 1.5810, 1.5885 and 1.5925.
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