On December 12, the previously-dominating bearish momentum came to an end when the GBP/USD pair visited the price levels of 1.2500 where the backside of the broken daily uptrend was located.
Since then, the current bullish swing has been taking place until January 28 when the GBP/USD pair was almost approaching the supply level of 1.3240.
That's when the current bearish pullback was initiated around slightly lower price levels near 1.3215 (around the depicted supply levels in RED).
This was followed by a bearish engulfing daily candlestick on January 29. Thus, the GBP/USD pair lost its bullish persistence above 1.3155 as a result.
As expected, the recent bearish decline below 1.3150 brought the GBP/USD pair into a deeper bearish correction towards 1.2920-1.2950 where (38.2% Fibonacci level) as well as the backside of the depicted broken trend are located (in RED).
However, lack of bullish demand is being demonstrated on the current daily candlestick. Hence, the short-term scenario remains bearish towards 1.2800 unless bullish breakout above 1.2920 is re-established early.
Conservative traders should wait for further bearish decline towards 1.2825-1.2800 as a valid BUY entry. S/L to be located below 1.2760.
The material has been provided by InstaForex Company - www.instaforex.com