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 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 1.3880. Further bullish advancement is to be expected towards 1.4025.
Please note that the current bullish rally was initiated around 1.3570 where the GBPU/USD pair found considerable bullish support earlier last month.
Currently, the nearest SUPPLY level is located around 1.4025 where bearish rejection and a valid SELL Entry should be anticipated.
Otherwise, a bullish breakout above 1.4025 will probably enable further bullish advancement towards 1.4100-1.4150.
The material has been provided by InstaForex Company - www.instaforex.com