Bearish Persistence below 1.3820 favoured bearish decline towards 1.3600. Hence, Bearish breakout below 1.3600 was needed to enhance further bearish decline towards 1.3500 and probably 1.3400.
However, the GBPUSD pair was contained above the demand level of (1.3660) and below the key-level around 1.3900 before a temporary bullish spike could reach the price level of 1.4000 earlier last week.
This failed bullish spike above 1.3900 has re-tested the backside of the depicted broken channel which applied significant bearish pressure on the pair.
By the end of last week, temporary signs of bullish breakout above 1.3950 were witnessed. However, this turned out to be a bullish trap once the GBPUSD pair returned below 1.3950 again.
Shortly after, the GBPUSD was trapped between the depicted two price levels ( 1.3880 and 1.3950 ) until bullish breakout occurred earlier Yesterday.
Further bullish advancement was anticipated towards 1.4100 then 1.4150 where the lower limit of the recently-broken channel is currently located.
Conservative traders should be waiting for signs of bearish rejection. If so, quick bearish decline should be anticipated towards 1.4050 then 1.3950
