Successive ascending bottoms around 1.6465, 1.6555, and 1.6665 (corresponding to the uptrend line) represented a bullish structure which kept pushing higher.
Lack of bullish momentum and indecision were observed on the daily chart when the pair established a consolidation zone between 1.7050 and 1.7170 as depicted on the chart.
On the other hand, breakdown of the DEMAND level around 1.6975 allowed quick decline of the GBP/USD pair towards price zone of 1.6800-1.6820.
At retesting of price zone of 1.6800-1.6820 that took place yesterday, considerable bullish recovery took place. The first key-level to be watched is located around 1.6900.
As expected, the price zone between 1.7140 - 1.7170 provided evident bearish price action.
A pattern of multiple tops was confirmed after breakdown of the depicted bullish channel. Moreover, successive bearish targets were already reached last week.
As expected, the GBP/USD bears could have kept their SELL positions up to the price level of 1.6830 where the current Demand Level is located.
Price level of 1.6830 remains a significant level as it corresponds to a previous consolidation zone established in June.
Yesterday, a valid buy entry was suggested around 1.6820. Stop Loss should be located below 1.6790. The first bullish target is located around 1.6920.
