Since March, the GBPUSD pair has been moving sideways within a wide consolidation range extending between 1.3670 up to 1.4250 which acted as a prominent SUPPLY that prevented further bullish advancement.
On the other hand, the GBPUSD pair has been contained above the demand level of (1.3660) a few times until now while Bearish breakout below 1.3600 was needed to enhance further bearish decline.
Recently, Failure to maintain bearish pressure below 1.3670 (100% Fibonacci Level) has enhanced another bullish movement for retesting of the price level of 1.3700. Further bullish advancement is to be expected towards 1.3800.
Moreover, another quick bearish decline was executed towards 1.3570 where the GBPU/USD pair found considerable bullish support earlier last Yesterday.
That's why, the price zone of 1.3800-1.3850 now stands as a prominent supply zone to be watched upon any upcoming bullish pullback for bearish rejection and a valid sell entry.
The material has been provided by InstaForex Company - www.instaforex.com