The GBPUSD pair has been moving sideways with some bearish tendency while bearish breakout below 1.3600 was needed to enhance further bearish decline.
Bearish breakout below 1.3700 enabled quick bearish decline to occur towards 1.3400 which corresponded to 123% Fibonacci Level of the most recent bearish movement.
This was a good entry level for a corrective bullish pullback towards 1.3650 and 1.3720 which was temporarily bypassed.
Shortly after, the pair was testing the resistance zone around 1.3830 where bearish pressure originiated into the market.
More bearish extension took place towards 1.3220 where the lower limit of the current movement channel came to meet with Fibonacci level.
Conservative traders should have taken BUY trades around 1.3200 price levels as suggested in previous articles.
Current BUYERS are looking towards 1.3570 and 1.3600 as the next target levels to have some profits off the trade.
Moreover, the price level of 1.3570 stands as a key-resistance to be watched for bearish reversal if some bearish signs existed upon testing.
The short-term outlook remains bullish as long as the pair maintains its movement within the depicted channel above 1.3400.
The material has been provided by InstaForex Company – www.instaforex.com