On January 2nd, the market initiated the depicted uptrend line around 1.2380.
This uptrend line managed to push price towards 1.3200 before the GBP/USD pair came to meet the uptrend again around 1.2775 on February 14.
Another bullish wave was demonstrated towards 1.3350 before the bearish pullback brought the pair towards the uptrend again on March 11.
A weekly gap pushed the pair slightly below the trend line (almost reaching 1.2960) . However, significant bullish recovery was demonstrated rendering the mentioned bearish gap as a false bearish breakout.
Moreover, a short-term bearish channel was broken to the upside following the mentioned bullish recovery on March 11.
That's why, bullish persistence above 1.3060 allowed the GBPUSD pair to pursue the bullish momentum towards 1.3130, 1.3200 then 1.3360 where the current bearish pullback was initiated.
Bullish persistence above 1.3250 ( 50% Fibonacci expansion level ) was needed for confirmation of a bullish Flag pattern. However, significant bearish pressure was demonstrated below 1.3250.
Hence, the short term outlook turned to become bearish towards 1.3180 then 1.3095 where the depicted uptrend line comes to be tested again.
Bearish persistence below 1.3185 (23.6% Fibonacci expansion) is mandatory for further bearish decline. Any bullish breakout above which, gives early warning for sellers.
Intraday traders should wait for a valid SELL signal anywhere around (1.3215-1.3250).
T/P level to be located around 1.3180 and 1.3090. SL to be set as rebound H4 closure above 1.3200-1.3250 again.The material has been provided by InstaForex Company - www.instaforex.com