Although the GBP/USD pair has reached a major support line during last week (backside of broken long-term downtrend), the pair expressed quite obvious bullish price action and then the pair quickly went back to retest a previously mentioned resistance at 1.5750 and 1.5830, the same thing happened yesterday when we had very bullish daily candlestick with low at 1.5572.
It was mentioned that it would be ok to open short trading positions if the price firmly consolidates below this major resistance which has already happened.
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.
Last week the price level of 1.5830 was recommended as a valid Sell entry with SL above 1.5895 which got activated shortly after. This week we need to have consolidation below the yesterday's low of 1.5572. Otherwise, consolidation again above 1.5750 might hinder the bearish scenario opening the way directly towards 1.5830 again.
Theoretically speaking, the pair has confirmed a giant "double-top" pattern to be targeting 1.5350 as long as the pair is consolidating below neck-line around 1.5830 - 1.5890. It is important to note that price level 1.5550 should be watched for price action as cable may find quite strong support there.
