Recently, short-term outlook has turned into bearish after the GBP/USD pair could maintain movement below the price zone of 1.3900-1.3850 which corresponded to (61.8%-50%) Fibonacci zone.
However, the pair has recently failed to drop below the price level of 1.3670.
Previous bullish trials for retesting of 1.3900 should have given many valid SELL Entries as suggested in previous article.
Bearish Persistence below 1.3820 favoured bearish decline towards 1.3600. Hence, Bearish breakout below 1.3600 was needed to enhance further bearish decline towards 1.3500 and probably 1.3400.
However, the GBPUSD pair was contained above the demand level of (1.3660) and below the key-level around 1.3900 before a temporary bullish spike could reach the price level of 1.4000 earlier last week.
This failed bullish spike above 1.3900 has re-tested the backside of the depicted broken channel which applied significant bearish pressure on the pair.
By the end of last week, temporary signs of bullish breakout above 1.3950 were witnessed. However, this turned out to be a bullish trap once the EURUSD pair returned below 1.3950 again.
Currently, bearish persistence below 1.3880 will be needed to allow more bearish decline. Initial bearish target would be located at 1.3700, 1.3660 and 1.3550.
Otherwise, the GBPUSD remains trapped between the depicted two price levels ( 1.3880 and 1.3950 ) until breakout occurs in either directions.
The material has been provided by InstaForex Company – www.instaforex.com