Last week the GBP/USD pair expressed the sustained bearish movement manifested in the Weekly Violet channel.

Today, the GBP/USD pair is testing the upper limit of this violet channel & the mid-line of the Blue one around 1.5388. In case it is broken, bullish movement towards 1.5440 will begin.

Price Zone 1.5440-1.5460 constitutes a strong resistance zone where price action should be observed for a possible SELL entry.

Last Friday, the GBP/USD pair tested the lower limit of its almost identical bearish Blue & Yellow channels around 1.5280 which expressing massive bullish reaction.

The GBP/USD pair has exceeded its Average Daily Range for the last successive three days of last week, and It is important to note that exceeding the ADR usually indicates a possible bullish retracement to take place soon after.

Price Level 1.5325 constitutes a significant Intraday Support level as it corresponds to the backside of the broken upper limit of the bearish Yellow & Blue channels.

In order to reach the level of 1.5440, the GBP/USD pair should find the bullish rejection towards 1.5325 and pass through its minor resistance level at 1.5390. Otherwise, the downtrend will be resumed towards 1.5160 sooner than expected.

A breakdown of the last recorded buttom at 1.5260 invalidates the bullish scenario.

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