Bearish Persistence below 1.3820 favoured bearish decline towards the 1.3600 levels. 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) a few times 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, 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 until bullish breakout occurred shortly afterwards.
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 were advised to wait for signs of bearish rejection. Hence, a quick bearish decline should be anticipated towards 1.4050 then 1.3950 as initial target.
