The GBPUSD pair remained trapped within a fixed price range until significant bearish momentum emerged into the market.
Bearish breakout below 1.3720 enabled further bearish decline towards 1.3560 then 1.3400 which was expected to be reached.
Recently, the GBPUSD pair was testing Demand-Zone located around 1.3400 which corresponded to 123% Fibonacci Level of the most recent bearish movement.
This was a good entry level for a corrective bullish pullback towards 1.3650 and 1.3720 which got reached after sufficient bullish momentum was maintained.
Currently, the short-term outlook remains bullish as long as the pair maintains its movement above 1.3550.
On the other hand, another bearish decline below 1.3550 will probably be an indicator for more bearish movement towards 1.3225 as it corresponds to the next Fibonacci Expansion Level.
