On February 5, a transient bullish channel was established around the levels of 1.5170-1.5200.
Estimated target for this bullish channel was reached at 1.5550 where the previous daily bottoms were located (solid resistance level).
Then, a bearish breakdown of the lower limit of this channel occurred enhancing the bearish side of the market and confirming the Flag pattern as a bearish one.
A significant bearish pressure was applied at the levels of 1.5170 (R2), and 1.4990 (R1 = broken weekly bottom) leading to a quick breakdown.
Persistence below 1.4950 indicated a further bearish decline. Initial projection target for this bearish breakout was located at 1.4700.
Moreover, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established (below 1.4700 which is the most recent bottom).
Last week, evident bullish recovery originated at 1.4560 pushing the GBP/USD pair above the level of 1.4700 looking for better prices to sell.
As anticipated, the bullish pullback towards 1.4950-1.5000 should be used to sell the pair off (significant resistance zone = R1).
It is already running in profits with signs of bearish rejection depicted on the chart (bearish reversal daily candlesticks at retesting of R1, 1.4990).
T/P levels remain projected at 1.4850, 1.4800, and 1.4720. S/L should be set as a daily closure above 1.5025.
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Uitgevoerd door, Analytische expert
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