GBP/USD expressed daily closure below the lower limit of the depicted bullish channel which extended the bearish movement towards 1.5970 which has been providing considerable support for the pair.
The lower limit of the broken DAILY channel was retested around the price zone of 1.6160 - 1.6180 last week triggering a suggested SELL entry which hit its full target at 1.5930.
As it was expected, strong bullish rejection was expressed on testing 50% Fibonacci around 1.5930 which provided a valid low risk BUY entry.
The upper limit of the depicted 4H channel around 1.6140 (an Intraday Resistance Level) is being re-tested this week showing significant bearish price action so far. However, SELLING is risky this time due to the strong bullish rejection manifested this week. That's why a small lot SELL entry is suggested off 1.6140 with tight SL placed above 1.6180.
Support: 1.6060, 1.6020, 1.5960, and 1.5920.
Resistance: 1.6125, 1.6175, and 1.6260.