Bearish Persistence below 1.3820 favoured bearish decline towards the 1.3600 levels. Bearish breakout below 1.3600 was needed to enhance further bearish decline.
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 1.4120.
The previous spike above has re-tested the backside of the depicted broken channel which applied significant bearish pressure on the pair.
Last week, 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 applied significant bearish pressure.
On the other hand, Failure to maintain bearish pressure below 1.3400 is enhancing another bullish movement for retesting of the price level of 1.4225.
Conservative traders should be waiting for signs of bearish rejection. If so, quick bearish decline should be anticipated towards 1.4050 then 1.3950 as initial target.
