The GBP/USD pair showed a significant bullish reaction towards the support level of 1.5265 which turned our short-term view for the pair into bullish.
The 4H chart also reveals a significant resistance level located at 1.5635 which corresponds to the lower limit of a previous congestion zone and the upper limit of the bullish Yellow channel initiated at price level of 1.5265.

The lower limit of the Yellow channel at 1.5400 provided Intraday Support for GBP/USD which pushed the pair to trade above its bearish channels assisted by the weekly bullish gap.
The GBP/USD pair has an Intraday Resistance Zone at 1.5600-1.5620 corresponding to the upper limit of the Yellow channel and the Average Daily Range.
The GBP/USD pair has an Intraday Support Level at 1.5500 which corresponds to the mid-line of the Yellow channel and the upper limit of the broken Violet channel and another stronger one located at 1.5400 which corresponds to the lower limit of the Yellow channel and previous Intraday bottom.
Breakdown of price level 1.5500 will probably open the way towards 1.5400 directly.

Based on the previous analysis

- The market offers a valid SELL entry around 1.5600-1.5620 with SL located above1.5680 and TP levels are to be located at 1.5555, 1.5495 and 1.5450.

- The market offers a valid BUY entry around 1.5400 with SL located below 1.5320 and TP levels are to be located at 1.5450, 1.5500 and 1.5590.

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