On March 29, the price levels of 1.2980 (the lower limit of the newly-established bearish 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 broken uptrend line demonstrated significant bearish rejection.
Since then, Short-term outlook has turned into bearish with intermediate-term bearish targets projected towards 1.2900 and 1.2850.
Last week, a bullish pullback was executed towards the price levels around 1.3035 - 1.3070 (50% - 61.8% Fibonacci levels) where temporary bearish rejection was demonstrated.
However, by the end of Friday's consolidations, significant bullish momentum was initiated around 1.3000.
Hence, a bullish breakout above 1.3075 was temporarily achieved.
Temporarily, short-term outlook turns to become bullish until bearish breakdown below 1.3035 (50% Fibonacci level) was achieved earlier Yesterday.
Currently, The price zone of 1.3030-1.3060 constitutes a prominent supply-zone to be watched for bearish entries.
On the other hand, H4 bullish breakout above 1.3075 enhances a quick bullish visit towards 1.3150 and 1.3200 where the most recent top was established on May 3.
Trade Recommendations:
Conservative traders should be waiting for signs of bearish reversal around the depicted price levels (1.3035-1.3070) as a valid SELL signal.
T/p levels to be located around 1.2950 and 2880.
Any bullish breakout above 1.3080 invalidates this bearish scenario.
The material has been provided by InstaForex Company - www.instaforex.com