The GBPUSD had a significant bearish momentum yesterday on broad US Dollar strength, broke below 1.6305 and hit 1.6167. The bias is bearish in nearest term targeting 1.6130 – 1.6063 even 1.6000 psychological level this week. However as you can see on my h4 chart below, although price still moving strongly inside the bearish channel after a bearish signal triggered by H&S formation, price has been bouncing to the upside at the upper line of the channel after hit the lower line. So watch out for another potential upside pullback. Immediate resistance at 1.6250 followed by 1.6305. A clear break above that area could trigger further upside pullback testing the upper line of the bearish channel but as long as price moves inside the bearish channel my overall technical bias remains to the downside.
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