On September 13, the GBP/USD pair was testing the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090. Since then, the pair has been demonstrating a successful bullish breakout so far.
However, On H4 chart, the market failed to maintain its uptrend within the depicted bullish channel on H4 chart. The lower limit of the depicted channel (which came to meet the GBP/USD pair around 1.3190) failed to offer sufficient bullish demand.
Therefore, the GBP/USD short-term outlook turned to become bearish towards 1.3010 (50% Fibonacci level) and 1.2940 (recent demand level).
As anticipated, the price level of 1.3190 (the backside of the broken bullish channel) offered significant bearish rejection and a valid SELL entry which is running in profits till now.
On the other hand, regarding the price levels (1.3010-1.3090) corresponding to 50% and 61.8% Fibonacci levels. Currently, these price levels turned to become supply levels to be watched for bearish price action on retesting.
The current bearish decline below 1.3010 (50% Fibo level) should be defended to pursue towards lower bearish targets.
Hence, the GBP/USD pair would have short-term bearish target around 1.2900-1.2940 (the backside of the broken daily downtrend and a prominent H4 demand zone) and possibly around 1.2845 if enough bearish pressure is demonstrated.
The material has been provided by InstaForex Company - www.instaforex.com