Source: Forex Analysis
On January 2nd, the market initiated the depicted uptrend line around 1.2380.
A weekly bearish gap pushed the pair below the uptrend line (almost reaching 1.2960) before the bullish breakout above short-term bearish channel was achieved on March 11.
Shortly after, the GBPUSD pair demonstrated weak bullish momentum towards 1.3200 then 1.3360 where the GBPUSD failed to achieve a higher high above the previous top achieved on February 27.
Instead, the depicted recent bearish channel was established.
Significant bearish pressure was demonstrated towards 1.3150 – 1.3120 where the depicted uptrend line failed to provide any bullish support leading to obvious bearish breakdown.
On March 29, the price levels of 1.2980 (the lower limit of the depicted movement channel) demonstrated significant bullish rejection.
This brought the GBPUSD pair again towards the price zone of (1.3160-1.3180) where the upper limit of the depicted bearish channel as well as the backside of the depicted uptrend line came to meet the pair.
Bearish rejection was anticipated around the mentioned price levels (1.3150-1.3180). However, the GBPUSD bullish pullback failed to pursue towards the mentioned zone.
Instead, significant bearish rejection was demonstrated earlier around the price level of 1.3120.
Hence, Short-term outlook has turned into bearish towards 1.2920-1.2900 where the lower limit of the depicted channel is located.
Any bullish pullback towards 1.3120-1.3140 should be considered for another SELL entry. TP levels to be located around 1.3100, 1.3020 then 1.2950 – 1.2920. S/L to be located above 1.3170.
The material has been provided by InstaForex Company – www.instaforex.com