On July 5, a bearish consolidation range-breakout was demonstrated below 1.2550 (the lower limit of the depicted consolidation range).
Moreover, Bearish breakdown below 1.2385 (Prominent Bottom) facilitated further bearish decline towards 1.2320, 1.2270 and 1.2100 which corresponded to significant key-levels on the Weekly chart.
The previously-mentioned price levels were risky for having new SELL entries. That's why, Long-term SELLERS were advised to have their profits gathered.
In Early August, a temporary consolidation-range was established above 1.2100 before August 9 when temporary bearish movement was 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 where recent bearish rejection is currently manifested towards 1.2215-1.2200.
For the intermediate-term, Further bullish advancement is expected to pursue towards 1.2320 as long as the current bullish momentum above 1.2200 and 1.2160 (the recent consolidation range pivot point) is maintained 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 valid bullish entry anywhere around 1.2215-1.2180.
Initial T/P level to be placed around 1.2250 and 1.2340 while S/L should be placed below 1.2160.
