FX.co ★ GBP/USD: Bearish pause within the ongoing uptrend, 1.5600 is still holding, June 19, 2013

GBP/USD pair reacted bearishly yesterday towards mentioned supply zone extending between 1.5680 and 1.5830.

Although the daily candlestick stepped below 1.5615 (Friday's low) reaching 50% Fibonacci at 1.5580, the pair failed to close below. Instead, we had daily closure at 1.5643 meaning that 1.5600 is still expressing bullish defence.

This daily closure may enhance the pair to visit 1.5700-1.5750 again where we the pair has supply zone extending till 1.5830.

On the other hand, this may be a pause for the market to wait for the Federal statement which is expected to be positive for USD which means further cable decline.

Price Zone 1.5800-1.5830 was expected to express some bearish pressure which already took place yesterday.

Price Zone 1.5580-1.5600 is a prominent demand zone (upper limit of previous congestion zone and retest zone for the confirmed 123 pattern).

Level 1.5480 is considered a pivot point (lower limit of the congestion zone and SMA 100) that should be broken in order to initiate mid-term bearish movement again.

Trading recommendations:

Wait for retesting of 1.5700-1.5750 for a valid SELL entry to be taken there, SL as daily closure above 1.5830 and initial target at 1.5500-1.5480.