On March 29, a visit towards the price levels of 1.2980 (the lower limit of the newly-established bearish movement channel) could bring the GBPUSD pair again towards the upper limit of the minor bearish channel around (1.3160-1.3180).
Since then, Short-term outlook has turned into bearish with intermediate-term bearish targets projected towards 1.2900 and 1.2850.
On April 26, another bullish pullback was initiated towards 1.3000 (the same bottom of March 29) which has been breached to the upside until May 13 when a bearish Head and Shoulders pattern was demonstrated on the H4 chart with neckline located around 1.2980-1.3020.
Bearish persistence below 1.2980 enhanced further bearish decline.
Initial bearish Targets were already reached around 1.2900-1.2870 (the backside of the broken channel) which failed to provide any bullish support for the GBPUSD pair.
Further bearish decline was demonstrated towards the lower limit of the long-term channel around (1.2700-1.2650).
The GBPUSD pair looked oversold around the mentioned price levels (1.2650-1.2600). That's why conservative traders were suggested NOT to consider any SELL signals at such low prices.
As anticipated, bullish breakout above 1.2650 was achieved Yesterday. This enhances the bullish side of the market.
Currently, short-term bullish movement is expected towards 1.2750 where price action should be re-assessed.
Trade Recommendations:
For counter-trend traders, a valid BUY entry was suggested around 1.2650. T/P level to be located around 1.2720 and 1.2820. S/L should be advanced to entry levels (1.2650) to offset the associated risk.
Conservative traders should wait for an extensive bullish pullback towards 1.2870-1.2905 (newly-established supply zone) to look for valid sell entries. S/L should be placed above 1.2950.
