Bullish breakout above the depicted bearish channel took place exposing price levels around 1.6985 as a projection target.
Simultaneously, daily closure above 1.6820 took place enhancing bullish impulse towards 1.6900 and 1.7000.
The GBP/USD pair managed to break through psychological resistance around 1.7000 which provided extensive bearish pressure at the last visit on May 6.
Bullish pressure was applied at retesting of the bullish channel lower limit depicted on the 4H chart. This pushed the pair towards 1.7150 where the upper limit of the depicted channel is located.
Bullish pressure was applied to break-through the upper limit of the 4H movement channel. However, lack of follow-through is now witnessed on the chart as bullish pressure being applied is not enough to ensure success of the bullish breakout.
On the other hand, intraday resistance is being expressed. A short-term SELL position can be taken at the current prices with SL located just above 1.7190. Breakdown of 1.7120 - 1.7100 ensures a deeper bearish correction towards 1.7050 initially.
Price levels of 1.7050 constitutes a significant support level to meet the pair on its way downwards. It's also a key-level to determine how deep bearish correction can go before resuming the bullish momentum.
The material has been provided by InstaForex Company - www.instaforex.com
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