On December 12, the previously-dominating bearish momentum came to an end when the GBP/USD pair visited the price levels of 1.2500 where the backside of the broken daily uptrend was located.
Since then, the current bullish swing has been taking place until January 28 when the GBP/USD pair lost its bullish persistence above 1.3155.
Hence, the short-term scenario turned bearish towards 1.2920 then 1.2800 where the previous bearish pullback was terminated.
On February 15, significant bullish recovery was demonstrated around 1.2800-1.2820 resulting in the recent bullish swing. Quick bullish movement was demonstrated towards 1.3155, 1.3240 and 1.3300.
Early signs of bearish reversal/retracement were demonstrated around the price level of 1.3317. Bearish pullback was expected to extend down towards 1.3150 which failed to offer enough bullish support.
That's why, further bearish decline took place towards the price levels of 1.3050-1.3000 where the depicted demand-zone is currently located.
Bullish persistence above the newly-established depicted demand-level (1.3050-1.3020) is mandatory to prevent further bearish decline.
On the other hand, any bearish breakdown below 1.3020 invalidates the short-term bullish scenario allowing a quick bearish movement to occur towards 1.2950-1.2920 where the next prominent demand zone is located.
Conservative traders can consider the current bearish pullback around 1.3050 as a valid BUY entry. S/L to be located below 1.3000. T/P levels to be located around 1.3140 and 1.3240 initially.The material has been provided by InstaForex Company - www.instaforex.com