The GBPUSD pair has been moving sideways with some bearish tendency while bearish breakout below 1.3600 was needed to enhance further bearish decline.
On the other hand, the nearest SUPPLY level was located around 1.4000 where bearish rejection and a valid SELL Entry was anticipated.
Bearish breakout below 1.3680 enabled further bearish decline towards 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 was temporarily bypassed.
Shortly after, the pair was testing the resistance zone around 1.3830 where bearish pressure originiated into the market.
Currently, the short-term outlook remains bearish as long as the pair maintains its movement within the depicted channel below 1.3400.
More bearish extension is expected towards 1.3220 where the lower limit of the current movement channel comes to meet with 150% Fibonacci level.
Conservative traders should be looking for BUY trades around these price levels.
On the other hand, the price level of 1.3570 stands as a key-resistance to be watched either for bearish reversal or a continuation pattern upon any upcoming visit.