Strong bullish rejection was expressed around 1.4700 (previous weekly low). A significant bullish weekly candlestick was expressed by the end of the week.
Shortly after, an evident bearish pressure was applied around 1.4960-1.5000.
This price zone corresponds to 38.2% Fibonacci level as well as the previous weekly demand, which was broken back in January 2015.
A sideways movement with slight bearish tendency has been expressed on the daily chart until bearish breakdown of the daily demand level at 1.4700 took place last week.
A projection target for this consolidation breakout was located around the price level of 1.4440. However, the GBP/USD bears failed to defend their DAILY SUPPLY at 1.4800.
Recently, the GBP/USD pair failed to trade above the level of 1.4970. This brought the pair back towards the lower limit of the price range at 1.4700 where extensive bearish pressure was applied.
The GBP/USD pair has been trapped between the levels of 1.4700 and 1.4970. A false bearish breakout was taking place below 1.4700 until the GBP/USD bulls came back to trade above 1.4700.
As anticipated, H4 fixation above 1.4800 would ease the bearish pressure attempting to rally towards the price zone around 1.4950-1.4970 (consolidation zone's upper limit).
A valid SELL entry could have been offered at retesting of the price zone of 1.4940 - 4970 (upper limit of the wedge pattern as well as 38.2% Fibonacci level).
Estimated bearish targets would be projected towards 1.4850, 1.4800 and 1.4730.
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