The previous consolidation movement extended between the price levels of 1.5550 and 1.5770. It represented a period of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.

Bearish breakout below 1.5550 directly exposed lower targets. Bears have already pushed towards the price levels of 1.5050 and 1.4960 which have not been visited since July 2013.

As mentioned in the previous articles, conservative traders should have been waiting for the current bullish pullback towards the recent SUPPLY zone around 1.5280-1.5320 for a low-risk SELL entry.

This SUPPLY zone also corresponds to the upper limit of the depicted daily channel where bearish pressure was anticipated on the last retesting that took place last week.

This bearish scenario was once threatened on Thursday. On Friday, it was followed by a bearish engulfing daily candlestick that pushed the GBP/USD pair again inside the channel.

Today, another bullish breakout scenario is being attempted. By the end of today, daily closure should be watched for confirmation (above 1.5300).

Today, the GBP/USD pair has spiked above the price zone of 1.5280-1.5320 (prominent SUPPLY ZONE), which is failing to provide enough SUPPLY for the pair.

On January, the GBP/USD pair has shown bullish recovery off the price level of 1.5050. Since then, the GBP/USD pair has been showing an inverted Head and Shoulders reversal pattern.

The price level of 1.5280 corresponded to the upper limit of the depicted H4 channel as well as 50% Fibonacci level of the recent bearish swing that extended between 1.5600 and 1.4976.

Hence, daily closure above 1.5340 confirms the reversal pattern exposing the price levels of 1.5500 and 1.5590 (full projection target of the reversal pattern).