On January 2nd, the market initiated the depicted uptrend line around 1.2380.
On March 11, a Weekly bearish gap pushed the pair below the uptrend line (almost reaching 1.2960) before the bullish breakout above short-term bearish channel could be achieved.
Shortly after, the GBPUSD pair demonstrated weak bullish momentum towards 1.3200 then 1.3360 where the GBPUSD failed to achieve a higher high above the previous top achieved on February 28.
Instead, the depicted recent bearish channel was established.
Significant bearish pressure was demonstrated towards 1.3150 - 1.3120 where the depicted uptrend line failed to provide any bullish support leading to obvious bearish breakdown.
On March 29, the price levels of 1.2980 (the lower limit of the newly-established bearish movement channel) demonstrated significant bullish rejection.
This brought the GBPUSD pair again towards the price zone of (1.3160-1.3180) where the upper limit of the depicted bearish channel as well as the backside of the depicted uptrend line demonstrated significant bearish rejection.
Since then, Short-term outlook has turned into bearish with intermediate-term bearish targets projected towards 1.2900, 1.2800 and 1.2750 where the lower limit of the depicted channel comes again to meet the GBPUSD pair.
This week, As expected, a bullish pullback occurred towards price levels around 1.3050 which is currently failing to provide immediate bearish supply for the pair affected by negative fundamental data from the US.
For the bullish side to regain dominance, quick bearish closure should be achieved below 1.3070.
Trade Recommendations:
Bearish rejection should be anticipated around the current price levels (1.3090) as long as the market fails to achieve any bullish breakout above 1.3130 (78.6% Fibo).
The material has been provided by InstaForex Company - www.instaforex.com