Previously around 61.8% - 50% Fibonacci levels depicted on the chart, a Shooting Star daily candlestick occurred. A valid SELL position was suggested then and it got triggered few days later. The market successfully pushed below 1.6100 shortly after.
Bullish rejection was once expressed when the market pushed below 1.6100 and 1.6060 on September 9. However, another bearish leg dipped further below 1.6060 during the current month.
Bullish recovery was expressed off price levels of 1.5940 and 1.5880. Bullish engulfing daily candlesticks emerging off these levels are depicted on the chart.
On the other hand, the price zone of 1.6100-1.6140 constituted a prominent SUPPLY zone where considerable bearish pressure was applied many times.
Despite the bullish breakout off the depicted bearish channel on the daily chart, the pair has been moving sideways with bearish tendency.
Daily fixation above price levels of 1.5870 and 1.5945 is essential to pursue towards further targets initially around 1.6140 and 1.6300.
On the other hand, daily fixation below 1.5870 puts further bearish pressure on the pair to reach 1.5800-1.5790 where bullish recovery should be anticipated ( Note Yesterday's daily candlestick ).
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
Two weeks ago, bulls managed to push beyond the upper limit of the channel. However, the GBP/USD pair was trapped between the backside of the channel (1.5860) and price level of 1.6140.
A low risk BUY entry was suggested around 1.5830-1.5800 with Stop Loss located just below 1.5770. It's running in profits now. Bullish fixation above 1.5950 is needed to resume the bullish swing.
Bullish target is located around the upper limit of the congestion zone around 1.6140.
A higher-risk BUY position can also be offered after fixation above 1.5950 occurs.
