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. Bearish breakout of this continuation pattern enabled the bears to reach price level of 1.5550 directly.

Final bearish target would be located at the price level of 1.5140 where the lower limit of the movement channel is located.

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 price level of 1.5160 that hasn't been visited since August 2013.

Potential projection target for flag continuation pattern should be located around 1.5140 down to 1.5100 where the lower limit of the current movement channel is 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.