The GBP/USD pair expressed quick decline towards 1.5450 after US dollar gained much strength affected by Federal Statement on Wednesday.
Technically, the pair reacted bearishly towards mentioned supply zone extending between 1.5680 and 1.5750 (61.8% Fibonacci) that leads to this decline towards 1.5420 (SMA 100).
Due to this steep decline, we expect some recovery takes place at 1.5420 to collect further sellers before resuming bearish movement, this recovery may extend towards 1.5520-1.5580.
This recovery was initiated yesterday when we had a bullish hammer daily candlestick with its low at 1.5411.
On the 4H chart, we find that the pair still has a lower target at 1.5375 (50% Fibonacci of the current ascending wave and previous top established on June 3).
Price action should be watched at 1.5375-1.5300 (demand zone between 50% - 61.8% Fibonacci) as it will probably provide a good BUY entry with minimal SL below 1.5270. Breakdown of 1.5375-1.5300 invalidates the bullish scenario for the pair.
The bullish recovery initiated yesterday was maintained at 1.5525 (SMA 100). That is why, breakdown of the recent low 1.5411 is not excluded today to open the way towards 1.5375.
Trading recommendations:
Buy the pair around 1.5375-1.5300 with target at 1.5570 and SELL around 1.5560-1.5580 with target around 1.5400.
