Overview:
The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with the projection target at 1.5300.
The market has already pushed further below reaching down to 1.5030-1.4980 where the lower limit of the channel has been providing support for the pair over the past few weeks.
Recently, H4 chart showed a transition phase into a sideway movement that has been maintained within the depicted price range.
A bearish engulfing daily candlestick was expressed at retesting of the upper limit of the daily channel on Friday. Hence, the GBP/USD pair went back to retest the newly-established DAILY SUPPORT around (1.5170-1.5200) which allowed bulls to establish a new ascending bottom (a sign of ongoing bullish momentum).
Persistence of the GBP/USD pair above the recent DAILY support (the price zone of 1.5170-1.5200) currently applies considerable bullish pressure over the price level of 1.5360 (61.8% Fibonacci level) where bearish rejection was previously applied on Friday.
Trading recommendations:
A valid BUY entry can be taken upon daily closure above 1.5360 takes place. SL should be placed slightly below the recent bottom around 1.5200.
