Despite the indecisive movements last week, the GBP/USD pair reacted strongly towards 1.6300 – 1.6350 zone confirming the bearish retracement scenario expected last week.
The bearish Head & Shoulders reversal pattern on the 4H chart which was confirmed last Friday enables 1.6060 in the short-term as long as the pair is trading below 1.6200.
On Monday, the GBP/USD pair found intraday support around 1.6100 which prevented further decline of the pair. However, today the pair is expressing some deeper bearish movement reaching down to 1.6085 which corresponds to the lower limit of the bullish movement channel depicted on the chart.
Support: 1.6120, 1.6075, 1.6030, and 1.5920
Resistance: 1.6150, 1.6260, 1.6300, and 1.6350.
Intraday support around 1.6160 was broken down last week leading the price to neutral zone in nearest term testing 1.6130-1.6050, while a longer-term support is seen around price level of 1.6060 corresponding to the lower limit of the 4H bullish channel and 1.5920 (50% Fibonacci Level).