On Friday, after the GBP/USD pair breached the price level of 1.6785, the market expressed a Shooting Star daily candlestick indicating strength of the bearish momentum on these levels.
As depicted on the chart, the next demand level is located around 50% Fibonacci at 1.6540. This is the next destination for the bears.
As long as 1.6820 remains the highest level for the month, the price level of 1.6540 remains the target for the bears to gather enough bullish momentum to push higher again.
Another scenario is that a Double Top pattern is being established with the neckline located around 1.6600-1.6580 which is being tested today with some bullish rejection being expressed so far.
Daily fixation below this neckline will enable the pair to reach 1.6400 as a projection target.
Yesterday, the bears failed to close below 1.6580 (neckline). That's why, another bullish swing towards 1.6800 is expected.
Price zone of 1.6700-1.6730 remains an intraday supply for the pair.
Bearish rejection is being expressed on the retesting that took place today.
As long as the bears remains defending this price zone, the pair remains heading towards 1.6600. Stop loss for the bearish scenario should be located above 1.6750.
The material has been provided by InstaForex Company - www.instaforex.com
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