Previously, 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.
The bullish momentum wasn't strong enough to allow the bullish breakout above 1.6880-1.6900 to pursue towards further targets. Instead, this breakout lost its bullish momentum showing successive lower highs as a part of a bearish reversal pattern as depicted on the chart.
Again, the GBP/USD pair showed bullish recovery after testing of 1.6690. This pushed the pair again towards 1.6750-1.6800 (prominent SUPPLY level).
If the bears manage to prevent any bullish breakout above the depicted key-level around 1.6800, the pair will have obvious targets around 1.6670 initially then 1.6600 to be followed.
Note that this key level corresponds to the backside of the broken trendline as well as the upper limit of the ongoing bearish channel. Thus, a bearish position could have been taken there.
The bulls managed to record a higher value above the recent one at 1.6900. However, the ongoing demand has been fulfilled around 1.6920 which led to a price decline again.
Bearish breakdown of 1.6825-1.6800 (which means breakdown of the previous congestion zone as well) exposed price level of 1.6740 for breakdown.
Price zone of 1.6750-1.6770 corresponded to lower limit of the ongoing channel. However, it has been broken down previously during last week's consolidations.
This enhances the bearish momentum on the short-term prospective as long as the bears remain defending 1.6800 and also provided a valid SELL opportunity at retesting that took place yesterday and earlier today. Stop loss should be set as daily closure above 1.6840.
Management of the bears to maintain 4H fixation below this price zone suggests a bearish limb towards 1.6650 resuming the bearish movement within the depicted bearish channel.
The material has been provided by InstaForex Company - www.instaforex.com
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