Successive bottoms around 1.6465, 1.6555, and 1.6665 (corresponding to the depicted uptrend line) constituted a solid bullish structure to keep pushing higher.
However, in May, the bullish momentum wasn't strong enough to allow the bullish breakout above 1.7000 to pursue towards further targets. Instead, this previous breakout lost its bullish momentum showing successive lower highs that temporarily managed to breakdown the depicted uptrend line.
This has been taking place until the GBP/USD pair showed bullish recovery around 1.6690 which was followed by strong bullish pressure that pushed above 1.7000 (prominent top established on May 6) and 1.7100 thus challenging new price levels that has not been visited since 2008.
The most dependable DEMAND level is located around 1.7050.
Bullish fixation above 1.7000 enhanced the bullish channel scenario, thus enabling the bulls to reach 1.7100 and 1.7160 shortly after.
The current price zone between 1.7140 - 1.7160 should be watched for early reversal bearish price action.
It should constitute a significant SUPPLY zone as it corresponds to the upper limit of the depicted channel.
A short position can be triggered at the current levels with stop loss located above 1.7200.
Bearish targets should be located at 1.7055 and 1.7000.
