The GBP/USD Daily chart which illustrates the bearish swing between 1.6616 and 1.5232 reveals that the pair has strong resistance at 1.6085 which corresponds to 61.8% Fibonacci level.
Price Level 1.6130 located slightly higher than 61.8% Fibonacci has been acting as resistance each time when tested.
Thus, levels 1.6085-1.6130 are considered as a significant supply zone in the Long-term and also as a good SELL entry for swing traders.
The GBP/USD pair is considered bullish as long as it is being traded above 1.5985. However, the breakthrough will result in a quick decline towards the 1.5875 level.
Yesterday we didn't witness significant movement except bearish engulfing 4H candlestick towards 1.6060 which fails to reverse the short-term direction till now.
We suggested that last week's BUY positions located at the 1.5858 level achieved TP levels at 1.5940 and 1.5995, where some profits should have been taken with a possibilty to remain bullish towards 1.6085 and 1.6130.
At the moment BUY positions are considered as too risky, so price action towards 1.6130 should be carefully observed in order to catch a mid-term short position.
A breakdown of 1.5985 to the downside is considered a bearish signal for the short-term prospective.
