GBP/USD expressed daily closure below the lower limit of the depicted bullish channel which extended the bearish movement towards 1.5970; a considerable support for the pair has been provided.
Last week the lower limit of the broken DAILY channel was retested around the price zone of 1.6160 - 1.6180 triggering a suggested SELL entry which hit its full target at 1.5930.
As it was expected, strong bullish rejection was expressed on testing 50% Fibonacci around 1.5930 which provided a valid low risk BUY entry.
The upper limit of the depicted 4H channel around 1.6140 (an Intraday Resistance Level) was re-tested last week showing a significant bearish price action so far. Although, SELLING was considered risky due to the strong bullish rejection manifested around 1.5930, a small lot SELL entry was trigerred off 1.6140 with tight SL placed above 1.6180.
Profits should be partially taken with considering the following support and resistance levels.
Support: 1.6060, 1.6020, 1.5960, and 1.5920.
Resistance: 1.6125, 1.6175, and 1.6260.
