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 level which was approached yesterday.
This week, the GBP/USD pair expressed daily closure outside the depicted bullish channel which was followed by yesterday's daily closure again back inside the channel (above 1.6130).
Support: 1.6130, 1.6066, 1.6030, and 1.5920
Resistance: 1.6270, 1.6315, and 1.6350.
Intraday support around 1.6100 corresponding to the backside of the broken down trend line and 1.6060 corresponding to the lower limit of the 4H bullish channel were tested yesterday expressing massive bullish price action manifested in the bullish engulfing candlestick.
A long-term support is seen around the price level of l and 1.5920 (50% Fibonacci Level). However, a considerable Intraday Resistance is expected to be found around 1.6315 (78.6% Fibonacci).