Last week the GBP/USD pair managed to pass through the resistance level 1.5870 without any obvious signs of the weakened bullish movement that took place while testing the supply zone 1.5940-1.5960.
Last Friday the daily candlestick was affected by the bearish movement resulting in the closure below 1.5840 which is an intraday support for the pair. This can be considered as another sighn of bearish movement.
The GBP/USD pair has a support area between 1.5740-1.5760 which corresponds to the lower limit of the depicted bullish channel & previous mutliple tops which are considered as the key-level for bulls this week.
Direct testing of this support area will probably initiate the bullish movement towards 1.5870 which is the key level for bears.
As it was on Friday, having failed to break the 1.5940-1.5960 levels the slight decline towards 1.5840 took place.
On the 4H chart the "Head & Shoulders" reversal pattern is likely to be formed. It will provide signals for SELL-deals near the point 1.5870 corresponding to the right shoulder.
Also the GBP/USD pair is approaching the lower limit of the bullish channel at 1.5740-1.5760 which constitutes an intraday support for the pair if visited first.
In case this support level is broken down, the pair will decline to the point 1.5660 which is considered as the prominent support on the 4H chart.
If the pair breaks the 1.5960 level and keeps the position, the bearish scenario will be reversed.
