On July 5, a consolidation range bearish breakout was demonstrated below 1.2550 corresponding to the lower limit of the depicted consolidation range.
Moreover, Bearish breakdown below 1.2385 (Prominent Bottom) facilitated further bearish decline towards 1.2320, 1.2210 and 1.2100 which corresponded to significant key-levels on the Weekly chart.
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 (Lower limit of the recently established consolidation-zone).
As expected, further bullish advancement was demonstrated towards 1.2230 then 1.2280 where recent bearish rejection was demonstrated.
Bullish persistence above 1.2160 (the recent consolidation range pivot-point) was needed to enhance further bullish advancement towards 1.2320 then 1.2380.
However, recent bearish rejection was demonstrated around 1.2215 (backside of the depicted broken uptrend line).
That's why, another bearish decline is currently taking place towards 1.2050. Thus, challenging the recent weekly bottom established on August 9.
Trade Recommendations:
Conservative traders are advised to wait for a bullish pullback towards 1.2160 for a valid SELL entry.
T/P level to be placed around 1.2100 and 1.2020, while S/L should be placed above 1.2220.
