Hi María here. What a great day! I am happy to be here with you sharing this technical analysis for the GBPUSD, hope it will help you.
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The pair managed to make a bullish breakout of the consolidation range 1.5650 - 1.5740 within the bullish channel which opened the way for the pair to test 1.5775 that was broken too.
Break of resistance level 1.5775 opened the way directly towards 1.5870 which showed BEARISH price action in the first time.
Testing of the SUPPORT level 1.5740 showed BULLISH price action which led to break through 1.5775, the intraday resistance reaching 1.5870.
This week, we suggested a Short position which hit its SL with 4H closure above 1.5870. However, the pair came again to consolidate below 1.5870.
Now there's no obvious view for the pair as it made breakout above 1.5870 then failed to fixate above coming again below it showing the bearish domination again.
Also it's important to mention that the GBP/USD currency pair has a strong support area marked in blue on the chart at 1.5734-1.5750 which is the lower limit of both consolidation range & the newly formed bullish channel.
Based on the previous analysis
It's suggested to SELL at the resistance 1.5870 & BUY at 1.5734-1.5750 untill the pair decides its next destination outside the consolidation range 1.5735 - 1.5870.
Have a great day
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