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 bearish gap pushed the pair slightly below the trend line (almost reaching 1.2960) before the bullish breakout above short-term bearish channel was achieved on March 11.
Bullish persistence above 1.3060 allowed the GBP/USD 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 1.3120 - 1.3100 where the depicted uptrend line comes to be tested again.
The current price zone of (1.3120-1.3090) corresponding to the uptrend line should be watched for a possible bullish reversal as long as bullish persistence above (1.3080) is maintained.
On the other hand, a bearish breakout below 1.3080 (23.6% Fibonacci expansion) invalidates the current bullish scenario allowing further bearish decline towards 1.3000 and 1.2965 (Next Fibonacci level).
Intraday traders should wait for a valid BUY entry anywhere around (1.3120-1.3090). T/P level to be located around 1.3180 and 1.3250. SL to be set as H4 closure below 1.3080.The material has been provided by InstaForex Company - www.instaforex.com