The bottoms around 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.
However, the bullish momentum wasn't strong enough to allow the bullish breakout above 1.7000 to pursue towards further targets. Instead, this breakout lost its bullish momentum showing successive lower highs as depicted on the chart.
Again last week, the GBP/USD pair showed bullish recovery after testing 1.6690 which was followed by strong bullish pressure being applied.
This pushed the pair again towards retesting of 1.6980-1.7000 (prominent top established on May 6).
If the bears keep preventing any bullish breakout above 1.7000, the pair will have obvious targets around 1.6900 initially then 1.6850 to be followed (depicted on the 4H chart).
Recently, the price level of 1.6920 provided enough SELLING pressure on May 21 which managed to pause the bullish impusle. However, this time the bears have failed to pause the ongoing bullish pressure.
The bulls managed to re-fixate above the previously broken uptrend line. Moreover, they are now challenging the recent top around 1.6970 - 1.7000.
Management of the bears to maintain the 4H fixation below this price zone suggests a bearish limb towards 1.6850 - 1.6810 where significant Fibonacci Levels are located.
On the other hand, 4H bullish fixation above 1.7000 will enable the bulls to reach 1.7090 and probably 1.7130 before bearish retracement can take place.
The material has been provided by InstaForex Company - www.instaforex.com
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