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, Bearish breakout below 1.3600 was needed to enhance further bearish decline.
However, the GBPUSD pair has been contained above the demand level of (1.3660) a few times until now.
Recently, Failure to maintain bearish pressure below 1.4000 (61.8% Fibonacci Level) has enhanced another bullish movement for retesting of the price level of 1.4250 where Conservative traders expected much selling pressure and valid SELL Entries.
Quick bearish decline was executed towards 1.3880 then 1.3800 where the GBPU/USD pair found considerable bullish support earlier last month.
Recently, the price level of 1.3800 was being re-visited. This visit should have been watched for price action as Bearish breakout below which enables more bearish decline towards 1.3670.
On the other hand, the price zone of 1.4060-1.4100 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