The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the daily chart, the last push has ended up expressing significant bearish price action indicating a false break above 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).
Price levels 1.6115, 1.6080, and 1.6000 have been broken down confirming the bearish bias for the pair; these levels were lost as support triggered considerable bearish momentum towards 1.5960 initially as it was expected yesterday.
It is important to note that the pair has already broken down a long-term uptrend line that came to meet the pair around 1.6000, the loss of which opens the way towards 1.5910 then 1.5825. However, consolidation below 1.5900 is necessary to maintain the bearish momentum for today.
Considering the possible extension of the current bearish move since the 1.6330 false spike, the pair is now focused at the 100% retracement around 1.5825. However, some profits should have been taken around 1.5910 to avoid possible retracement movements.
