Note the depicted Shooting Star daily candlestick that occurred previously around 61.8% Fibonacci level. Such significant bearish pressure offered SELL positions a few days later at retesting.
Note that the bullish rejection was initiated when the market pushed below 1.6100 and 1.6060 on September 9.
Another bearish leg was expressed below 1.6060 (the previous weekly low is located around 1.5950).
On the other hand, the price zone of 1.6100-1.6140 remains a prominent SUPPLY zone where considerable bearish pressure was applied on the pair on Thursday resulting in formation of an Inverted Hammer daily candlestick followed by a long bearish engulfing daily candlestick of Yesterday.
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
A SELL entry was suggested around the price level of 1.6140. It's running in profits now (+220 pips).
4H Fixation above 1.5970 ( previous bottom ) invalidates the downtrend allowing bullish correction towards price levels of 1.6060 - 1.6100.
Stop loss of the running short-position can be advanced to 1.6025 to secure some profits.
