The GBP/USD pair successfully achieved its projection target around 1.6600 after the bullish breakout above 1.6250. This price level (1.6600) is acting as a daily resistance for the pair until now.
Last bullish movement exceeded 1.6600 rendering 1.6666 as the highest price in January. However, bearish engulfing daily candlestick was immediately expressed off these high levels (1.6666).
Following sideway consolidations, obvious bearish pressure was applied on the currency pair, resulting in a bearish pattern Three Black Crows, which was confirmed with Monday's daily closure.
The next demand level is located at 1.6250 where a recent bottom was established on December 17 as well as previous multiple tops.
Wednesday's candlestick barely reached 1.6251 and the resulting candlestick was a daily hammer candlestick indicating bullish presence around 1.6250.
This week, many daily attempts to approach/breach 1.6250 took place. The resulting daily candlesticks came as bullish hammers indicating prominent support around these levels.
As mentioned before, the GBP/USD pair's short-term direction turned to be bearish after the breakdown at 1.6450-1.6460.
Fixation below 1.6450 triggered bearish pressure towards 1.6400, then 1.6300, which was hit during this week's consolidations.
The 4H chart shows a demand zone located at 1.6250-1.6280 corresponding to the backside of the depicted bearish channel as well as previous congestion zone.
There's a possible bullish "Head and Shoulders" reversal pattern being established around this price zone. This may lead to a bullish impulse towards 1.6420 as a projection target.
This price zone may initiate corrective bullish movement to the upside to collect more sellers around 1.6400-1.6450. However, early breakdown below this zone will bring further bearish momentum without the retesting of 1.6450.
Selling the pair is suggested at the retesting of 1.6450 with Stop Loss as daily closure above 1.6475.