Previously, the GBP/USD pair found temporary DEMAND around 1.5550 where many lows were established within a congestion zone back in November 2014.

A bearish breakout was expressed after successive unsuccessful attempts back in 2014.

A bearish flag pattern is obvious on the daily chart, similar to what happened back in October.

The final bearish target was expected to be the level of 1.5140 where the lower limit of the movement channel is located. This target got already reached yesterday.

Today, the GBP/USD pair is currently showing some bullish recovery off the price level of 1.5050 supported by the positive UK Manufacturing production data that emerged today.

Consolidation movement ranging between the price levels of 1.5770 and 1.5550 represented the state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.

As anticipated, the bearish breakout below 1.5550 directly exposed lower targets. The bears have already reached the price level of 1.5050 that hasn't been hit since August 2013.

A potential projection target for the flag continuation pattern was expected to be located around 1.5100, where the lower limit of the current movement channel is roughly located.

Conservative traders should wait for a bullish pull-back towards the recent SUPPLY zone around 1.5480-1.5550 for a low-risk SELL entry. The stop loss should be located above 1.5560.

Note that the price level of 1.5480 corresponds to 50% Fibonacci level as well as multiple previous bottoms established back in December.