Few weeks ago, the neckline of the depicted Double-Bottom pattern (1.2400-1.2415) was breached to the upside allowing further bullish advancement to occur towards 1.2800 then 1.3000 where the GBP/USD pair looked OVERBOUGHT.
Shortly After, the GBP/USD pair has failed to achieve a persistent bullish breakout above the depicted SUPPLY-zone (1.2980-1.3000) which corresponds to a previous Prominent-TOP that goes back to May 2019.
Moreover, the depicted ascending wedge reversal pattern has been confirmed indicating a high probability of bearish reversal around the price levels of 1.2950-1.2970.
That's why, a quick bearish movement was initiated towards 1.2780 (Key-Level) where the current bullish recovery was recently initiated.
The recent Bullish rejection around the price levels of 1.2780, indicated another temporary bullish movement towards 1.2980-1.3000 where another long-term bearish swing can be initiated.
On the other hand, quick bearish breakout below 1.2780 should be achieved to enable further bearish decline towards 1.2600-1.2650 where some bullish recovery should be anticipated.
Please note that bullish breakout above 1.3000 invalidates the mentioned bearish outlook temporarily until re-closure below 1.2970 is established again
Trade Recommendations:
Risky traders were advised to have a valid BUY entry around 1.2780 which is running in profits now. S/L should be advanced to 1.2880 to secure more profits.
On the other hand, Intraday traders can look for bearish rejection around 1.2980-1.3000 as a valid SELL signal with T/P levels projected towards 1.2780 and 1.2650.
The material has been provided by InstaForex Company - www.instaforex.com