On September 21, the GBP/USD failed to demonstrate sufficient bullish momentum above 1.3296. The short-term outlook turned to become bearish to test the backside of the broken uptrend.
On H4 chart, the GBP/USD pair looked oversold around the price levels of 1.2700 where profitable BUY entries were suggested.
A Quick bullish movement was demonstrated towards the price level of 1.3170-1.3200 where the depicted downtrend came to meet the GBP/USD pair.
This initiated the current bearish pullback towards the depicted demand-zone of (1.2850-1.2780) where slight bullish recovery towards 1.2980 (key-level) was overpowered by quick bearish decline towards 1.2720 on November 15.
Recently, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2980 (key-level for the short-term scenario). Moreover, a quick bearish decline was demonstrated towards the price zone around 1.2780.
Bullish persistence above the price zone of 1.2850-1.2780 (demand-zone) is needed to prevent further bearish decline and to allow another bullish movement to occur towards 1.2980.
On the other hand, bearish persistence below 1.2780 allows further bearish decline towards 1.2700 and 1.2670.
The material has been provided by InstaForex Company - www.instaforex.com