The GBP/USD currency pair has been making higher highs and lows within the bullish channels depicted on the chart since last Friday.
The movement channels are directed to the upside with variable bullish tendency. However, the GBP/USD pair has broken down the lower limit of the Violet channel at 1.5715, then the mid-line of the Yellow channel which indicates a possible bearish retracement in the upcoming movement to be targeting at the lower limit of the Yellow channel at 1.5625.
Price level of 1.5622 corresponding to the average daily range of the GBP/USD pair for today and also corresponding to the lower limit of the Yellow channel is considered as a valid low-risk buy entry with SL located below 1.5575.
Price zone 1.5755 - 1.5765 corresponding to the upper limit of the Yellow channel and the backside of the broken Violet channel is considered as a valid low-risk sell entry with SL located above 1.5790.
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