Since May 17, the previous downside movement within the depicted bearish channel came to a pause allowing the recent sideway consolidation range to be established between 1.2750 - 1.2550.
On July 5, a bearish range breakout was demonstrated below 1.2550 (the lower limit of the depicted consolidation range).
Hence, quick bearish decline was demonstrated towards the price zone of 1.2430-1.2385 (the lower limit of the movement channel) which failed to provide consistent bullish demand for the GBP/USD.
Moreover, Bearish breakdown below 1.2350 facilitated further bearish decline towards 1.2320, 1.2270 and 1.2100 which correspond to significant key-levels on the Weekly chart.
The previously-mentioned price levels were quite risky/low for having new SELL entries. That's why, Previous SELLERS were advised to have their profits gathered.
Two weeks ago, a temporary consolidation-range was demonstrated above 1.2100 before Friday when another bearish movement could be executed towards 1.2025.
Recent bullish recovery was demonstrated off the recent bottom (1.2025). This brought the GBP/USD pair back above 1.2100 (recently-established demand Level).
As expected, recent bullish movement was demonstrated towards 1.2230.
Further bullish advancement is expected to pursue towards 1.2320 if the current bullish momentum is maintained above 1.2160 (the recent consolidation range pivot point) on a daily basis.
On the other hand, any bearish breakout below 1.2160 invalidates the previous scenario allowing another bearish visit towards 1.2025.
Trade Recommendations:
Intraday traders are advised to look for a bullish entry anywhere around 1.2190-1.2170.
Initial T/P level to be placed around 1.2250 and 1.2340 while S/L should be placed below 1.2160.
