The daily studies of GBPUSD pair show that, prices have been dominated by a downtrend after placing the significant peak of 1.7190
The bounce from 1.4550 regions has been assist the pair to breach through the resistance line set from the aforementioned top.
Actually, the resistance formed in the 1.55 territories has pushed the pair to the downside once again in the second half of past week; noting that, this resistance intersects with 38.2% Fibonacci level of the entire declines started in July 2014.
Currently, momentum indicator-Bollinger bands %B- contradicts with being carried by Ribbons lines from the underside, while the pair re-test the broken trend line.
Thereby, we may witness a long period of fluctuation between 1.5150 and 1.50 until technical indicators agree.
Despite this awaited consolidation, but we believe that, short positions for intraday traders may work, aiming to see whether the GBPUSD pair will draw a right shoulder of the potential inverse head and shoulders pattern near 1.50 zones or it will breach below it destroying the under-construction classical pattern.
To recap, 1.4975- a few pips above 1.4955 support- is the target for our short position we will take with the weekly opening and then, we will stand aside until the pair proves the ability to draw the head and shoulders pattern to re-new our long positions, attempting to breach 38.2% Fibonacci.
On the downside, coming below 1.4955 will encourage us to sell the pair with failure to complete the classical pattern.