The GBP/USD pair has been fluctuating heavily within the past few weeks failing to maintain a directional long-term trend.
On the midterm aspect, consolidation came again above 1.5970. Getting back inside the previous consolidation range indicated that the upper limit around 1.6160 would be visited, which took place last week, with further bullish pressure towards 1.6300, corresponding to 78.6% Fibonacci Level where the GBP/USD pair expressed significant bearish reaction manifested in the inverted hammer daily candlestick depicted on the chart.
On the 4H chart the GBP/USD pair expressed significant bullish reaction towards the price zone between 50% and 61.8% Fibonacci levels, which pushed the GBP/USD pair to test 1.6200, then 1.6300.
Bearish reversal pattern (4H double top was expressed), which indicated bearish retracement, is to take place followed by strong bearish pressure manifested in the bearish engulfing daily candlestick.
In the midterm, price zone 1.6125 - 1.6100 is rendered as a valid BUY entry on retesting as it corresponds to the lower limit of the current 4H bullish channel.
Breakdown below the Intraday Support Price Zone 1.6125 - 1.6100 (the lower limit of the current 4H bullish channel) is necessary to maintain the long-term bearish movement.
Technical resistance levels: 1.6240, 1.6300, 1.6350, and 1.6400.
Technical support levels: 1.6170, 1.6140, 1.6080 and 1.6000.