On January 2nd, the market initiated the depicted uptrend line around 1.2380.
On March 11, a weekly bearish gap pushed the pair below the uptrend line (almost reaching 1.2960) before the bullish breakout above short-term bearish channel was achieved.
Shortly after, the GBPUSD pair demonstrated weak bullish momentum towards 1.3200 then 1.3360 where the GBPUSD failed to achieve a higher high above the previous top achieved on February 27.
Instead, the depicted recent bearish channel was established.
Significant bearish pressure was demonstrated towards 1.3150 – 1.3120 where the depicted uptrend line failed to provide any bullish support leading to obvious bearish breakdown.
On March 29, the price levels of 1.2980 (the lower limit of the depicted movement channel) demonstrated significant bullish rejection.
This brought the GBPUSD pair again towards the price zone of (1.3160-1.3180) where the upper limit of the depicted bearish channel as well as the backside of the depicted uptrend line demonstrated significant bearish rejection.
Since then, Short-term outlook has turned into bearish with intermediate-term bearish targets projected towards 1.2900, 1.2800 and 1.2750 where the lower limit of the depicted channel comes again to meet the GBPUSD pair.
Yesterday, we expected a bullish pullback to occur towards the depicted supply zone 1.3000-1.3033 which constitutes a major resistance zone on the short-term.
Conservative traders can have a valid SELL entry anywhere around the current price levels (1.3020-1.3035).
TP levels to be located around 1.2950, 1.2905 and 1.2800 and S/L to be located above 1.3100.