Overview:
The GBP/USD pair has been moving downwards below the depicted downtrend line since July 15 when the ongoing downtrend was initiated.
Many bearish impulses were previously initiated around 1.7180, 1.6630 and 1.6400 where the downtrend line came to meet the pair then.
The price zone of 1.6060 - 1.6090 constituted a transient daily support that paused the bearish movement for a few days since September 9. However, the bears quickly managed to push below reaching down to 1.5890 (depicted on the chart).
Price level of 1.5890 provided a solid daily support level that provided evident bullish recovery. A bullish engulfing daily candlestick is manifest on the chart.
Recently, the bulls has pushed above the downtrend line. Bullish breakout off the downtrend line as well as an inverted bullish Head and Shoulders are already manifest on the chart. Bullish fixation above 1.6060 was essential to maintain the bullish scenario. However, the bears have pushed towards the backside of the broken trendline once again.
The current sideway consolidations needs breakout in either direction to liberate a new swing.
Trading recommendations:
Price action should be watched at the backside of the broken trendline around 1.5960. A valid buy entry can be taken if significant bullish rejection is expressed.
Bullish fixation above 1.6060 is needed to confirm such position.
