On September 13, the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090 failed to offer enough bearish pressure on the pair. Since then, the GBP/USD pair has been demonstrating a successful bullish breakout so far.
On September 21, the GBP/USD pair failed to demonstrate sufficient bullish momentum above 1.3296. The short-term outlook turned to become bearish within the depicted H4 bearish channel to test the backside of the broken uptrend.
Recently, the price level of 1.2900-1.2940 (the backside of the broken uptrend) demonstrated significant bullish recovery which led to the recent bullish breakout of the depicted H4 channel.
Evident bullish momentum was demonstrated above 1.3010 and 1.3100 (61.8% Fibo level) which led to recent bullish movement towards 1.3200 where the current bearish movement towards 1.2940 was initiated.
As for the bullish breakout scenario to remain valid, bullish persistence above 1.3010 (50% Fibo level) and 1.3100 (61.8% Fibo level) is needed to maintain sufficient bullish momentum initially towards 1.3200 and 1.3280.
On the other hand, bearish persistence below the price level of 1.3000 (50% Fibo level) enhances further bearish decline towards 1.2940 and 1.2870.
The material has been provided by InstaForex Company -
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