Despite the indecisive movements last week, the GBP/USD pair reacted strongly towards 1.6300 – 1.6350 zone confirming the bearish retracement scenario expected last week.
The bearish Head and Shoulders reversal pattern on the 4H chart which was confirmed last Friday, enabled 1.6060 in the short-term.
Yesterday, the GBP/USD pair expressed daily closure outside the depicted bullish channel which is probably an indicator for further bearish movements towards 1.6030 initially. However, having today's daily closure back inside the channel (above 1.6130 ) invalidated this short-term bearish view.
Support: 1.6100, 1.6066, 1.6030, and 1.5920
Resistance: 1.6150, 1.6260, 1.6300, and 1.6350.
Intraday support around 1.6160 was broken down last week leading the price to neutral zone testing 1.6130-1.6050, while a longer-term support is seen around the price level of 1.6060 corresponding to the lower limit of the 4H bullish channel and 1.5920 (50% Fibonacci Level).