On September 13, the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090 failed to offer enough bearish pressure on the pair. Since then, the GBP/USD pair has been demonstrating a successful bullish breakout so far.
On September 21, the GBP/USD failed to demonstrate sufficient bullish momentum above 1.3296. The short-term outlook turned to become bearish within the depicted H4 bearish channel to test the backside of the broken uptrend.
Recently, the price level of 1.2900-1.2940 (the backside of the broken uptrend) demonstrated significant bullish recovery which led to the recent bullish breakout of the depicted H4 channel.
Evident Bullish momentum was demonstrated above 1.3010 and recently above 1.3100 (61.8% Fibo level) which led to the recent bullish movement towards 1.3200.
As for the bullish breakout scenario to remain valid, bullish persistence above 1.3200 (SELL-ZONE) was needed to maintain sufficient bullish momentum initially towards 1.3280.
However, Bearish persistence below 1.3200 hindered the bullish breakout scenario allowing a further decline towards 1.3090 (61.8% Fibo level) and probably 1.3010 (50% Fibonacci level) if enough bearish pressure is applied.
Today, price action should be watched around the current price level of 1.3100 (61.8% Fibo level) to decide the next destination for the GBP/USD pair.
The material has been provided by InstaForex Company - www.instaforex.com