The GBPUSD pair has been moving sideways with some bearish tendency while bearish breakout below 1.3600 was needed to enhance further bearish decline.
On the other hand, the nearest SUPPLY level was located around 1.4000 where bearish rejection and a valid SELL Entry was anticipated.
The recent bullish rejection witnessed around 1.3600 as well as the temporary bullish breakout above 1.3880 indicated a high probability that this bullish movement may pursue towards 1.4025 then 1.4100.
However, the pair remained trapped within a fixed price range until significant bearish momentum emerged into the market.
Bearish breakout below 1.3720 enabled further bearish decline towards 1.3560 while the price level of 1.3400 was expected to be reached if sufficient bearish pressure was maintained.
Currently, the GBPUSD pair is testing a significant Demand-Zone located around 1.3400 which corresponds to 123% Fibonacci Level of the most recent bearish movement. This maybe a good entry level for a corrective pullback if sufficient bullish rejection is expressed.
On the other hand, Further bearish decline below 1.3400 will probably enable more bearish movement towards 1.3225 as it corresponds to the next Fibonacci Expansion Level
The material has been provided by InstaForex Company - www.instaforex.com