As expected a second breakout occurred in gbp/usd pair. The first one was a false break upwards at the time Frankfurt markets opened. The second one happened at around 8:40 GMT. US dollar bulls managed to push British Pound below Asian lows. However, price action that followed the break did not confirm real bearish bias. A bullish pin formed on 15 minute chart after the break. It indicates that the break might be false and a bounce off 1.5635 level is very real.
For that to happen current low has to form and more bullish signs to appear. It could be railroad tracks, bullish pins, double bottom, inverted head and shoulders or other technical reversal pattern.
On the other hand, if you look at 4 hour chart you will see another bearish pin. This signal is far more stronger than 15 minute bullish pin. Taking into account the fact that British Pound formed a lof of these bearish pins over the course of a month we may assume that bearish bias should continue at least in the beginning of this week. The turnaround might be expected on Wednesday when two pieces of information come out: US CPI (Consumer Price Index) and FED minutes. Both of these could change the course of events.
Bearish pin on 4 hour chart in gbp/usd