GBP/USD rebounded to 1.5805 after had reached its five-month high at 1.6062, forming a descending triangle formation on the 4h Chart. The pattern has 65% quality along with 55% magnitude in a 56-bar period.
The price increased to 1.5886 and may test the pattern's resistance level around 1.5895. The Stochastic indicator recoiled from the 26% level and is trying to reach its overbought area at 80%. Bears may focus their attention on the resistance at 1.5895. If the price bounces of this level, the initial target for short traders might be at 1.5806 where the present support level stands.
The pair's bias is bearish on the 4h timeframe, while on the weekly chart indicators give Strong Buy signal. If the price increases, bulls could pay their attention to the resistance level around 1.5873/94. If the price breaches the 1.5786 level, the main target for bulls could be at 1.5929.