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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 considered as an intraday support for the pair. This can be considered as another sign 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.
The resistance area 1.5870-1.5900 is considered as the key level for bears for this week.
As it was on Friday, having failed to break the 1.5940-1.5960 levels, the pair has slightly declined towards the point 1.5840.
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 which was visited yesterday.
The neck-line for this H&S pattern is located at 1.5790 which needs to be broken to confirm the pattern with targets at 1.5720, 1.5662 then 1.5630.
Also the GBP/USD pair has the lower limit of the bullish channel at 1.5740-1.5760. Therefore it is necessary to mind the intraday support level.
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 1.5960 level, the bearish scenario will be invalidated.
