The GBP/USD pair has been fluctuating heavily within the past few weeks after the broken DAILY bullish channel was retested around the price zone of 1.6160 - 1.6180, failing to maintain a directional trend.
The narrow consolidation range 1.6025 - 1.5925 was broken to the downside with a potential target near the price level of 1.5780.
The false breakout above the short-term descending resistance depicted on the 4H chart was maintained at Daily Resistance Level 1.6160. It activated the bearish scenario, which anticipated further downside pressure supported by the breakdown below 50% Fibonacci (1.5930) that took place a week ago. It's important to notice that Yesterday the pair has managed to re-consolidate above this level again.
Consolidation below the Intraday Support Price Zone 1.5900 - 1.5930 and breakdown of Intraday Support around 1.5850 are necessary to maintain the bearish movement. However, indications of a bullish corrective movement appeared on the daily chart conditioned that the pair succeeds to step above 50% Fibonacci (1.5930).
Price levels around 1.5970 constitute a strong DAILY resistance, hence a valid long-term SELL entry with SL is located just above 1.6050.
SUPPORT: 1.5920, 1.5830,1.5800, 1.5760, and 1.5670.
Resistance: 1.5970, 1.6000, and 1.6030.