Previously, the recent prominent bottoms around 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.
The bullish momentum wasn’t strong enough to allow the bullish breakout above 1.6880-1.6900 to pursue towards further targets. Instead, this breakout lost its bullish momentum showing successive lower highs as a part of a bearish reversal pattern manifested in successive lower highs as depicted on the chart.
Again, the GBP/USD pair showed bullish recovery after testing of 1.6690. This pushed the pair again towards 1.6750-1.6770.
If the bears manage to prevent any bullish breakout above the currently tested key-level around 1.6750, the pair will have obvious targets around 1.6670 initially then 1.6600 to be followed.
The bulls managed to record a higher value above the recent one at 1.6900. However, the ongoing demand has been fulfilled around 1.6920 which led to a price decline again.
Bearish breakdown of 1.6825-1.6800 ( which means breakdown of the previous congestion zone as well ) exposed price level of 1.6740 which has already been hit before.
Price zone of 1.6750-1.6770 corresponded to lower limit of the ongoing channel. However, it has been broken down previously this week. This enhances the bearish momentum on the weekly-basis also provides a valid SELL entry at retesting with SL located just above 1.6795.
4H fixation below this price zone suggests a bearish limb towards 1.6650.
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Performed by Michael Becker, Analytical expert InstaForex Group © 2007-2014 |
Intraday technical levels and trading recommendations on GBP/USD for June 2, 2014
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