The recent bearish momentum of the GBP/USD has shown signs of weakness since September 5 when an ascending bottom was established around 1.2800
The GBP/USD pair is currently testing the depicted downtrend line which comes to meet the pair around 1.3025-1.3090.
This price zone (1.3025-1.3090) corresponds to 50% and 61.8% Fibonacci levels where evident bearish rejection should be anticipated.
As long as successful bullish breakout above 1.3090 is maintained, further bullish advancement will probably occur towards 1.3200, 1.3250 and 1.3315.
On the other hand, any bearish decline below 1.3020 (50% Fibo level) will probably invalidate the bullish breakout scenario. Hence, the short-term outlook would remain bearish towards 1.2840 and 1.2780.
The material has been provided by InstaForex Company - www.instaforex.com