In February, the GBPUSD pair looked overbought while consolidating sideways around the price-levels of 1.3700.
Sideway movement with slight bullish tendency was demonstrated while approaching these price levels around 1.3700-1.3750.
Thats's why, Bearish pullback was expressed. However, the GBP/USD pair has failed to maintain sufficient bearish momentum.
Strong bullish movement was expressed, Hence, upside movement was expected towards the new limit of the current movement channel around 1.4100-1.4150.
Obvious Bearish rejection and a SELL Entry was suggested around this price zone. Since then, the GBPUSD pair has been moving sideways with bearish tendency.
Short-term outlook has turned into bearish after the GBP/USD pair could maintain movement below 1.3820 which corresponds to 61.8% Fibonacci level. Any bullish trials for retesting should give a valid SELL Entry.
Note that Bearish Persistence below 1.3820 will enhance bearish decline at least towards 1.3500. Otherwise, another breakout above 1.3900 will probably liberate another bullish movement towards 1.4200.
The material has been provided by InstaForex Company - www.instaforex.com