Although the GBP/USD curreny pair is moving within a slightly bullish channel, it begad to move sideways after hitting the resistance level 1.5870 which may be a trend change point.
Visiting resistance level 1.5870 showed BEARISH price action forming a possible Head and Shoulders reversal pattern with neckline at 1.5785.
Selling was suggested yesterday at the the resistance 1.5870 forming the right shoulder of the H&S pattern with profit till now which needs to be confirmed with 4H closure below 1.5785.
GBP/USD 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 should be watched for a possible intraday reversal.
Its expected that support area will hold the price above in the first visit, pushing the pair to retrace towards 1.5835 which will be another good SELL entry.
Break of this support area 1.5734-1.5750 will open the way for a quick decline of GBP/USD price.
Based on the previous analysis
It's suggested to take some profits of yesterday's short position or even BUY with small lot size at or near to 1.5734-1.5750 with TP at 1.5830.
SELLING is suggested at 1.5830 & 1.5870 for a long-term SHORT position with TP at 1.5800,1.5730, 1.5660 with SL above 1.5930.
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