For a long period, the price zone of 1.6780-1.6800 constituted solid resistance that provided enough supply for two months until bullish breakout took place on May 1.
The recent prominent bottoms around 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.The bullish momentum wasn't strong enough to allow the bullish breakout above 1.6880-1.6900 to pursue towards further targets. Instead, this breakout lost its bullish momentum during previous consolidations.
The lower limit of the bullish wedge was broken down on previous Friday showing a full-body bearish daily candlestick. This enhances the bearish side of the market so far.
The GBP/USD showed bullish recovery after testing of 1.6730 thus enhancing the bullish momentum of the market. However, bearish engulfing daily candlestick was expressed Yesterday after testing of 1.6920 and we may witness a daily closure below once more.
If so, the bears would have obvious targets around 1.6770 and 1.6730.
The bulls managed to record a higher value above the recent one at 1.6900. However, the ongoing market demand has been fulfilled around 1.6920 which led to a price decline again.
Price zone of 1.6840-1.6825 is the nearest demand level to meet the pair ( It's a key-zone ).
At retesting, price action should be watched carefully for a possible BUY entry with SL to be located below 1.6800.
On the other hand, bearish breakdown of 1.6825-1.6800 ( which means breakdown of the previous congestion zone as well ) will probably expose price level of 1.6770-1.6750 to be visited shortly after.
