The pair has been consolidating since a pullback from 2/8 Murrey Math Level happened last week. Meanwhile, the Daily Super Trend Line is acting as resistance, which brings more evidence for the bearish outlook. Additionally, as long as price remains below 4/8 MM Level, the opportunity to have the pair lower will be still on the table. The price fixating under 3/8 MM Level will be a sign that bears are coming back into the market.
Previously, the pair formed a couple of pullback from +1/8 MM Level, which led to the current decline. The Super Trend Lines formed a 'Bearish Cross' little later on. That's why the ongoing consolidation might be just a local stop during the rally. However, we should wait for the market returning under Super Trend Lines as confirmation that another leg of the bearish rally is taking place. 1/8 MM Level could act as a support, so it's possible to have a local correction from this line.
The bottom line is that GBP/USD remains bearish and there's no any bullish sign so far. Nevertheless, we should wait for a break and the following price fixation under 3/8 MM Level and the one-hour Super Trend Line as essential confirmation for the bearish scenario. The main intraday target is 0/8 MM Level, which could be a departure point for a larger upward correction.
