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 then 1.3400 which was expected to be reached.
Recently, the GBPUSD pair was testing Demand-Zone located around 1.3400 which corresponded to 123% Fibonacci Level of the most recent bearish movement.
This was a good entry level for a corrective bullish pullback towards 1.3650 and 1.3720 which was bypassed.
Currently, the short-term outlook remains bullish as long as the pair maintains its movement above 1.3730. However, the pair was testing the resistance zone around 1.3830 where some bearish pressure originiated into the market.
On the other hand, another bearish decline below 1.3720 will probably be an indicator for more bearish movement towards 1.3570 as it corresponds to the next Fibonacci Expansion Level.
The material has been provided by InstaForex Company - www.instaforex.com