Overview:

On February 5, a bullish channel was established around the levels of 1.5170-1.5200.

Projected target for this bullish channel was reached around 1.5550 where the previous daily bottoms were located (solid resistance level).

Then a bearish breakdown of the lower limit of this channel occurred enhancing the bearish side of the market and confirming the Flag pattern as a bearish one.

Significant bearish pressure was applied to the levels of 1.5200 (R2), and 1.4950 (R1 = broken weekly bottom) leading to a quick breakdown.

Persistence below 1.4950 indicated further bearish decline. The initial projection target for this bearish breakout was located at 1.4700.

Bearish breakdown of 1.4700 enabled the pair to resume its bearish trend towards 1.4550 where a lower DAILY bottom was achieved (below 1.4700 which is the most recent bottom).

This week, evident bullish recovery originated around these levels pushing the GBP/USD pair again above 1.4700 looking for higher prices to SELL the pair off.

Currently, bullish pullback is taking place towards 1.4950 (significant resistance zone) probably offering a low-risk SHORT entry with S/L located slightly above 1.5015.

T/P levels should be placed at 1.4860, 1.4800 and 1.4720.