The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the chart, the last push ended up forming an inverted hanging man daily candlestick indicating a false break above 1.6300.
The GBP/USD pair expressed significant bearish price action reaction towards 1.6300 establishing a significant resistance zone.
Bullish retracement took place last week after testing 1.6000, which was capped around 1.6175 (backside of the broken bullish channel & 50% Fibonacci Level). However, failure to consolidate below 1.6110 again indicated a reversal for a retesting of 1.6170 - 1.6200 area again.
Price 1.6115 should be broken down early in order to confirm the bearish bias for today. However, failure to do so indicates a possible bullish double bottom pattern to be targeting at 1.6200-1.6230 levels.
Price Level 1.6170 should be watched for bearish price action and a possible SELL entry with SL just located above 1.6220.
