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On October 30, the GBP/USD pair looked oversold around the lower limit of the H4 channel around 1.2700 where profitable BUY entries were suggested.
A quick bullish movement was demonstrated towards the price level of 1.3170-1.3200 where another descending high around the depicted downtrend was established.
This initiated the current bearish pullback towards the depicted consolidation-zone of (1.2750-1.2880) where the current sideway movement within the depicted H4 channel was initiated.
Recently, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2880 (the upper limit of the current consolidation range).
This week, unsuccessful bearish breakout attempts were demonstrated below 1.2720. Moreover, signs of bullish recovery originated around 1.2670 earlier Yesterday.
Bullish persistence above 1.2780 (78.6% Fibo level) is mandatory to enhance the bullish side of the market towards 1.2880 and 1.2940 where new trading decisions should be taken upon price action.
On the other hand, the current scenario may pursue a bearish flag continuation pattern provided that bearish persistence below 1.2730 is quickly achieved on lower timeframes. Projected target for the bearish flag continuation pattern is initially located around 1.2600.
The material has been provided by InstaForex Company - www.instaforex.com