Last Friday GBP/USD declined rapidly towards 1.5233 to test the lower limit of the bearish channel marked on the chart.
Although it recorded a new low at the previously mentioned price level of 1.5233, it couldn't stabilize below 1.5278 showing massive bullish reaction towards the lower limit of the channel.
Yesterday, we suggested buying GBP/USD at 1.5280 that is considered a good LONG opportunity with an excellent Risk/Reward ratio but unfortunately the pair didn't reach that price before its upside movement.
Now we have a confirmed inverted 'Head & Shoulders' reversal pattern, as we had obvious closure above the neckline 1.5400.
It's important to note that the pair has a good resistance "Supply" zone between 1.5480-1.5540 which is also the upper limit of the marked bearish channel.
Based on the previous analysis:
Buying GBP/USD at 1.5380 is considered a good LONG opportunity to take advantage of the expected pattern.
SL daily closure below 1.5300 and TP will be at 1.5400, 1.5445 and 1.5470 with a possibility to reach 1.5530.
Price action towards price area 1.5480-1.5540 should be watched to catch a short entry on having a good bearish reaction.
