Strong bullish rejection was expressed around 1.4700 (previous weekly low). A significant bullish weekly candlestick was expressed by the end of the week.
Shortly after, an evident bearish pressure was applied around 1.4960-1.5000.
This price zone corresponds to 38.2% Fibonacci level as well as the previous weekly demand, which was broken back in January 2015.
Transient sideways movement with slight bearish tendency has been expressed on the daily chart until bearish breakdown of the daily demand level at 1.4700 took place last week.
Projection target for this consolidation breakout would be located around the price level of 1.4440.
The previous demand zone around 1.4960-1.5000 was breached three weeks ago resulting in a quick bearish decline towards 1.4700.
Evident bullish recovery was manifested on the H4 chart near the price level of 1.4700 (weekly low).
As mentioned before, fixation above 1.4700-1.4720 enhanced further bullish visits towards 1.5000.
Recently, the GBP/USD pair failed to trade above the level of 1.4970. This brought the pair back towards the lower limit of a price range at 1.4700 where extensive bearish pressure was applied.
The pair has been trapped between the levels of 1.4700 and 1.4970 until a bearish breakout took place below 1.4700 by the end of last week.
A valid sell entry can be offered at retesting of the backside of the level of 1.4760 (the nearest supply level to meet the pair).
Estimated bearish targets would be projected towards 1.4600,1.4500, then 1.4440.
The material has been provided by InstaForex Company - www.instaforex.com
