GBP/USD currency pair could make a bullish breakout of the marked long-term bearish channel.

Price level 1.5870 proved its strength as daily resistance for the GBP/USD currency pair showing massive bearish reaction.

Yesterday the GBP/USD currency pair was testing the support level 1.5660 which acted as a strong support showing obvious bullish reaction manifested in the daily candlestick closure.

Now the pair is trapped between two important levels 1.5780 & 1.5660 also having an important intraday support at 1.5730.

Break of support level 1.5660 will open the way to 1.5505 which is the backside of the upper limit of the broken channel.

Break of resistance area 1.5870-1.5900 will allow the pair to reach 1.6000 easily.

Visiting resistance level 1.5870 showed BEARISH price action forming a Head and Shoulders reversal pattern with neckline at 1.5785 which turned our view for the pair into BEARISH.

After break of this support area, the pair declined towards 1.5660 which is an important support marked on the chart.

Yesterday, the GBP/USD failed to break support area 1.5660. Instead, it showed obvious bullish pressure there.

Now the pair is retesting the backside of the broken channel & price zone between Fibonacci 50% - 61.8% ( 1.5785 - 1.5815 ) which is suggested to resist further bullish movement. However, its break will lead to possible break of the resistance area 1.5870.

Break though 1.5659 will open the way directly towards 1.5550.