On the mid-term scale, the GBP/USD currency pair is moving sideways in a slightly bearish channel since it managed to breakdown the mid-term uptrend line depicted on the chart.
Price levels of 1.5460 and 1.5520 which correspond to 61.8% and 50% of Fibonacci levels based on the previous bullish swing 1.5266 up to 1.5774.
On the intraday scale the price zone of 1.5400 corresponds to the lower limit of the long-term channel which constitutes a very strong support zone and is likely to push the GBP/USD pair to the upside to 1.5520 and 1.5570 then 1.5640 with SL located below 1.5390.
A short-term Head & Shoulders reversal pattern was seen this week at the key-zone of 1.5460 – 1.5520 which was broken down yesterday. However, GBP/USD failed to make higher highs. Instead, it’s building a bearish pressure over the support level of 1.5400.
The pair is probably forming a mid-term bearish Head & Shoulders reversal pattern with its right shoulder located around R1 (1.5645) which is rendered a valid sell entry with SL located above 1.5725.
The current price level 1.5500 constitutes a strong intraday resistance for GBP/USD which should be watched for price action today as its breakthrough will open the way towards the next resistance at 1.5570 then at 1.5640.
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