Overview:

The GBP/USD pair has been moving downwards respecting the depicted bearish channel since mid-September 2014 when the ongoing channel was initiated.

On December 17, the market failed to express a bullish breakout above the upper limit of the daily bearish channel. Shortly after, an extensive bearish pressure was applied against the price levels of 1.5540-1.5560 on December 23.

Daily closure below the recent bottoms established around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with projection target at 1.5300.

The market has already pushed further below this level reaching down to 1.5030 where the lower limit of the channel provided significant support for the pair.

Bullish recovery was manifested by the ascending bottoms being established on the H4 chart. This may apply further pressure to break above the recent high (1.5260).

The key-support zone for today's movement is located at 1.5150-1.5180. Fixation above it enhances the bullish side of the market towards 1.5260, 1.5370 and 1.5410.

However, within such strong bearish trend you should note that H4 fixation below 1.5100 indicates further bearish tendency on the market, probably, new lows below 1.5030 are going to be hit.

Trading recommendations:

Price zone of 1.5350-1.5380 ( 61.8% Fibonacci Level ) should be watched for new SELL entries with SL as daily closure above 1.5400.