Strong bullish rejection was expressed around 1.4700 (previous weekly low). A significant bullish weekly candlestick was expressed by the end of the week.
Shortly after, an evident bearish pressure was applied around 1.4960-1.5000.
This price zone corresponds to 38.2% Fibonacci level as well as the previous weekly demand, which was broken back in January 2015.
A sideways movement with slight bearish tendency has been expressed on the daily chart until bearish breakdown of the daily demand level at 1.4700 took place last week.
A projection target for this consolidation breakout was located around the price level of 1.4440. However, the GBP/USD bears failed to defend their DAILY SUPPLY at 1.4800.
Recently, the GBP/USD pair failed to trade above the level of 1.4970. This brought the pair back towards the lower limit of a price range at 1.4700 where extensive bearish pressure was applied.
The pair has been trapped between the levels of 1.4700 and 1.4970. A false bearish breakout was taking place below 1.4700 until the GBP/USD bulls came back to trade above 1.4700.
As anticipated, H4 fixation above 1.4800 would ease the bearish pressure attempting to rally towards the price zone around 1.4950-1.4970 (consolidation zone's upper limit).
A valid SELL entry can be offered at retesting of the price zone of 1.4940 - 4970 (upper limit of the wedge pattern as well as 38.2% Fibonacci level).
Estimated bearish targets would be projected towards 1.4850, 1.4800 and 1.4730.
The material has been provided by InstaForex Company - www.instaforex.com
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