The GBP/USD pair has been fluctuating heavily within the past few weeks failing to maintain a directional long-term trend.
On the midterm aspect, consolidation came again above 1.5970. Getting back inside the previous consolidation range indicated that the upper limit around 1.6160 would be visited. It took place last week with further bullish pressure towards 1.6300, corresponding to 78.6% Fibonacci Level, where the GBP/USD pair expressed significant bearish reaction reflected in the inverted hammer daily candlestick depicted on the chart.
On the 4H chart the GBP/USD pair expressed significant bearish price action reaction towards 1.6300 corresponding to the upper limit of the depicted bullish channel.
Bearish reversal pattern (4H double top was expressed), which indicated bearish retracement to take place, followed by strong bearish pressure reflected in the bearish engulfing daily candlesticks.
Price zone 1.6125 - 1.6100 was rendered as a valid BUY entry towards 1.6200, which corresponds to the long-term downtrend line. That's why significant bearish price action was expressed on retesting.
Breakdown below the Intraday Support Price Zone 1.6125 - 1.6100 (the lower limit of the current 4H bullish channel) invalidates the bullish scenario and is necessary to maintain the long-term bearish movement.
Technical resistance levels: 1.6200 , 1.6240, 1.6300.
Technical support levels: 1.6080 and 1.6000.
