On the mid-term scale, the GBP/USD currency pair is moving sideways in a slightly bearish channel since it managed to breakdown the mid-term uptrend line depicted on the chart.
Price levels of 1.5460 and 1.5520 which correspond to 61.8% and 50% of Fibonacci levels based on the previous bullish swing 1.5266 up to 1.5774.
On the intraday scale the price zone of 1.5400 corresponds to the lower limit of the long-term channel which constitutes a very strong support zone and is likely to push the GBP/USD pair to the upside to 1.5520 and 1.5570 then 1.5640 with SL located below 1.5390.
A short-term Head & Shoulders reversal pattern was seen this week at the key-zone of 1.5460 – 1.5520 which was broken down yesterday. However, GBP/USD failed to make higher highs. Instead, it’s building a bearish pressure over the support level of 1.5400.
The pair is probably forming a mid-term bearish Head & Shoulders reversal pattern with its right shoulder located around R1 (1.5645) which is rendered a valid sell entry with SL located above 1.5725.
The current price level 1.5500 constitutes a strong intraday resistance for GBP/USD which should be watched for price action today as its breakthrough will open the way towards the next resistance at 1.5570 then at 1.5640.

If you like my articles, please vote for me in Analyst of the Year Contest by clicking here.