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Since January 2016, bullish persistence above 1.4500 was mandatory to maintain enough bullish strength in the market.
However, as the previous weekly candlesticks maintained their bearish persistence below the depicted weekly supply zone (below 1.4470), the next demand level located at 1.3845 (historical bottom that goes back to March 2009) provided a significant bullish rejection on February 26.
As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3845 (a prominent weekly demand level) where a significant bullish swing was initiated on March 1.
The price zone of 1.4475-1.4670 was a significant supply zone during the past few weeks.
This week, the depicted downtrend line comes to meet the GBP/USD pair around the same price zone.
That is why, a bearish rejection should be expected again around the upper limit of it (1.4670 level).
The nearest destinations for the GBP/USD pair would be located at 1.4475, 1.4300, 1.4220 and finally, 1.3845.
A lower high was recently achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4470.
The GBP/USD pair looked oversold when the previous bearish decline extended below 1.4040 (temporary support).
That is why signs of a bullish recovery and a profitable long entry were suggested around 1.3845. A recent bullish swing was expressed towards the price levels around 1.4470.
The price zone of 1.4470-1.4670 constituted a significant supply zone where the depicted Head and Shoulders reversal pattern was expressed.
On April 7, the market failed to push below the price level of 1.4050. Hence a bullish movement was executed again towards the price levels of 1.4670 and 1.4750 (slightly above the 61.8% Fibonacci level).
That's why, the current shooting-star daily candlestick is being expressed indicating significant bearish rejection around 1.4700-1.4750.
This week, daily persistence below 1.4470 will be needed to enhance further bearish decline towards 1.4380 and 1.4170.
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