Since May 17, the depicted sideway consolidation range has been established between 1.2750 - 1.2570 with a prominent key-level around 1.2650.
On June 4, temporary bullish consolidations above 1.2650 were demonstrated for a few trading sessions.
This enhanced the bullish side of the market towards 1.2750 (consolidation range upper limit) which has been preventing further bullish advancement up till now.
Recently, the GBP/USD failed to establish a successful bullish breakout above 1.2750. Instead, early signs of bearish rejection have been manifested (Head & Shoulders reversal pattern with neckline located around 1.2650).
A quick bearish pullback towards 1.2650 was expected shortly.
Bearish breakdown below 1.2650 (reversal pattern neckline) confirms the reversal pattern with bearish projection target located at 1.2510.
On H4 chart, Obvious Bearish breakdown below 1.2570 confirms a trend reversal into bearish on the intermediate term. Immediate bearish decline would be expected towards 1.2505 initially.
On the other hand, a bullish position can be considered only if EARLY Bullish persistence above 1.2650 is achieved on the current H4 chart.
Trade Recommendations:
Intraday traders can have a valid BUY Entry upon bullish re-closure above 1.2650.
T/P levels to be located around 1.2750, 1.2840, 1.2900. S/L should be placed below 1.2570.
