The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the chart, the last push has ended up forming an inverted hanging man daily candlestick indicating a false break above 1.6300 establishing a significant resistance zone.
Bullish retracement took place last week after testing 1.6000, which was capped around 1.6175 (backside of the broken bullish channel and 50% Fibonacci Level).
Prices 1.6115 and 1.6080 were broken down this week confirming the bearish bias for the pair in the short term. However, there is some recovery from Monday’s low at 1.6030 which is located ahead above a critical intraday support zone around 1.6000 -1.5990. The loss of it would trigger considerable bearish momentum towards 1.5960 and then to 1.5900.
Price Levels 1.6080 and 1.6115 should be watched for bearish price action and further SELL entries with SL just located above 1.6220.