In April, Bearish Persistence below 1.3800 favoured bearish decline towards the 1.3600 levels. Bearish breakout below 1.3600 was needed to enhance further bearish decline.
However, the GBPUSD pair was contained above the demand level of (1.3660) a few times before the backside of the depicted broken channel could be retested around 1.4150 which applied significant bearish pressure on the pair.
Transient Bearish pullback was taking place until another bullish breakout occurred shortly afterwards.
Moreover, Failure to maintain bearish pressure below 1.3800 (76% Fibonacci Level) has enhanced another bullish movement for retesting of the price level of 1.4240 where 100% Fibonacci Level is currently located.
Please note that around the price levels of 1.4200-1.4250, Conservative traders should be considering bearish rejection and possible SELL Entries.
If so, the current bearish decline should be anticipated towards 1.4050 then 1.3950 as initial targets.
Until breakout occurs in either direction, the GBPUSD pair remains trapped between the price levels of 1.4100 and 1.4250 ( the current consolidation range ).
The material has been provided by InstaForex Company - www.instaforex.com