Since July 12, the GBP/USD pair demonstrated an uptrend movement within the depicted blue channel until the last week when the pair managed to break down the lower limit of the channel around 1.5690 and the significant support level around 1.5660 reaching the next support level around 1.5580 which was expected to keep the pair above for some period. However, the bearish movement extended down to 1.5485.
During this week, we had many expected technical patterns, for example, Head & Shoulders reversal pattern and Price Triangle which are broken to the downside and the backside of the broken blue channel. However, none of them was retested until today.
Yesterday, the GBP/USD pair was trapped within the price range between 1.5520 corresponding to 50% Fibonacci level and 1.5475 corresponding to 61.8% Fibonacci level. However, Price level of 1.5485 constituted a strong support for the pair.
As expected yesterday, Bullish breakout above 1.5520 opened the way towards 1.5650.
Price zone 1.5660 - 1.5690 is suggested as a SELL zone with TP levels located at 1.5600, 1.5555 then the final target level at 1.5440.
A breakthrough above 1.5700 invalidates the bearish scenario mentioned above.