In the period between December 18th - 23rd, bearish breakout below the previous bullish channel followed by quick bearish decline below 1.3000 were demonstrated on the H4 chart.
However, Immediate bullish recovery (around 1.2900) brought the pair back towards 1.3250 (backside of the broken channel) where the recently-terminated wide-ranged movement channel was established below 1.3200.
Since January 13, progressive bearish pressure has been built above the price level of 1.2780-1.2800 until March, the 2nd when transient bearish breakout 1.2780 took place.
Shortly after, significant bullish rejection was demonstrated around March 4. Hence, a quick bullish movement was expressed towards the price zone of 1.3165-1.3200 where significant bearish pressure brought the pair back below 1.2780, 1.2500 then 1.2260 via quick bearish engulfing H4 candlesticks.
Recently, the GBPUSD has reached new LOW price levels around 1.1450, slightly below the historical low (1.1650) achieved in September 2016 (As depicted on the Weekly Chart).
Currently, the GBP/USD pair looks very OVERSOLD. However, Technical outlook suggested further bearish decline as long as bearish persistence below 1.1650 was maintained on the H4 & Weekly Charts.
By the end of Last week, Conservative traders were advised to look for signs of bullish rejection for a probable bullish reversal opportunity around the historical price levels of (1.1500-1.1450). Transient bullish advancement was achieved towards 1.1900. However, immediate bearish rebound was expressed to retest the recent low around 1.1450.
H4 Candlestick closure below 1.1450 & Weekly Candlestick closure below 1.1650 enhances the bearish momentum on both the short and intermediate-terms respectively.
Initial Bearish targets are estimated to be located around 1.1350 and 1.1180 provided that quick H4 bearish closure below 1.1450 is achieved.
On the other hand, bullish breakout above 1.1900 (Latest Descending High) invalidates the bearish scenario temporarily & enables higher bullish targets around 1.2260, 1.2520, 1.2680 to be addressed if sufficient bullish momentum is maintained.
