The pound has been on a steady bearish run since the 28th of October, forming the traditional bearish footwork (Lower highs and Lower lows), with the Lower high corrective momentum not moving above the 50% Fibonacci nominal reversal level.
But, the last bearish corrective movement which occurs on the 12th, went ahead to be a draggy one, it lasted for a week straight, (it ended on 18th), aside the fact that the price went above both 21 and 50-day moving averages (blue and black line) the price also superseded and move above the 50% fib nominal reversal level to hitting the 0.618 fib level (that i called extreme reversal zone).
That said, the overall technical outlook on GBP/USD still remain Bearish and this would be fully confirmed if the bears use their selling power to push the market below the 1.3410 psychological support level. Otherwise, the bulls could hijack the price and begin a new ride towards the 1.3500 previous resistance zone.
But, the last bearish corrective movement which occurs on the 12th, went ahead to be a draggy one, it lasted for a week straight, (it ended on 18th), aside the fact that the price went above both 21 and 50-day moving averages (blue and black line) the price also superseded and move above the 50% fib nominal reversal level to hitting the 0.618 fib level (that i called extreme reversal zone).
That said, the overall technical outlook on GBP/USD still remain Bearish and this would be fully confirmed if the bears use their selling power to push the market below the 1.3410 psychological support level. Otherwise, the bulls could hijack the price and begin a new ride towards the 1.3500 previous resistance zone.