On Friday, After the GBP/USD pair breached price level of 1.6785, the market expressed a Shooting Star daily candlestick indicating strength of the bearish momentum on these levels.
From the fundamental prospective of view, the U.S. employment improved by 175 thousand during February. This contributed to the recent decline in the pound sterling against USD below the level of 1.6680.
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, price level of 1.6540 remains targeted by the bears in order to gather enough bullish momentum to push higher again.
Another scenario is that a Double Top pattern is being established with 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. Otherwise, another swing towards 1.6800 would be expected.
The material has been provided by InstaForex Company - www.instaforex.com
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