The GBP/USD pair has been fluctuating heavily within the past few weeks failing to maintain a directional long-term trend. However, the GBP/USD started the new year with a sharp bullish move above 1.6300. However, as we see in the chart, the last push ended up forming an inverted hanging man daily candlestick, indicating a false break above 1.6300.
On the 4H chart the GBP/USD pair expressed significant bearish price action reaction towards 1.6300 establishing a significant resistance zone.
Last week, the GBP/USD sellers managed to step below 1.6100. However, an immediate bullish reply took place pushing the pair towards higher levels, maybe aiming to retest last month's high at 1.6307, which took place this week.
Fixation below the Intraday Support Price Zone 1.6125 - 1.6100 is necessary to maintain bearish movement on the short term. However, if bullish retracement occurs first, which is expected to take place soon, Price Zone 1.6170 should be watched for bearish price action and a valid SELL entry with SL just located above 1.6220.
The strength of the current bearish candle indicates bearish domination, the bearish bias first focused on the recent support at 1.6100, 1.6050 then 1.5852 support, and November low will be a key level to break for further bearish outlook.
Technical resistance levels: 1.6080,1.6170, 1.6200 and 1.6245.
Technical support levels: 1.6000, 1.5960,1.5880 and 1.5852
