Despite the indecisive movements last weeks, the GBP/USD pair reacted strongly towards 1.6300 – 1.6350 zone confirming the bearish retracement scenario expected in previous articles.
The bearish Head and Shoulders reversal pattern on the 4H chart which was confirmed on Friday enabled 1.6060 level which is still being approached today.
Today, the GBP/USD may express daily closure below the lower limit of the depicted bullish channel which will probably be an indicator for further bearish movement towards 1.6040 and 1.5970 initially.
Support: 1.6066, 1.6030, and 1.5920.
Resistance: 1.6130, 1.6270, 1.6315, and 1.6350.
Intraday support around 1.6100 corresponding to the backside of the broken down trend line and 1.6030 corresponding to the lower limit of the 4H channel are being tested by today's daily candlestick.
A long-term support is seen around the price level of l and 1.5920 (50% Fibonacci Level). However, a considerable Intraday Resistance is expected to be found around 1.6315 (78.6% Fibonacci).
