Trading recommendations for GBP/USD, February 27
The daily closure below the last bottoms positioned around 1.5540-1.5560 rendered the earlier consolidation range as a bearish flag pattern with the prediction target at 1.5300.
The market has already pushed further below reaching down to 1.5030-1.4980 where the lower limit of the channel provided support for the pair few weeks ago.
The H4 chart showed a transition phase into a sideways movement that has been maintained within the depicted price range.
On February 5, primary bullish breakout above 1.5220 took place. Soon after, a new DAILY support was established around 1.5170-1.5200 (ascending bottoms, a sign of ongoing bullish momentum).
After then, the GBP/USD pair has been trending upwards within the portrayed H4 channel. Persistence of the pair above the last DAILY support (the price zone of 1.5170-1.5200) applied ample bullish pressure over the price level of 1.5360 (61.8% Fibonacci level on the H4 chart) which did not provide enough RESISTANCE.
The long-term prediction target for the recent bullish breakout above 1.5220 is positioned around 1.5500-1.5550 where the most recent DAILY bottoms are located (DAILY RESISTANCE).
A valid SELL entry can be executed at retesting of the price level of 1.5550. Stop Loss should be positioned above 1.5600 and Take Profits levels to be positioned at 1.5480, 1.5360 and finally at 1.5280.