In the period between September 13 - 20, a short-term Wedge-Pattern was demonstrated around 1.2550.
Shortly after, the reversal wedge-pattern was confirmed to the downside on September 23 demonstrating a successful bearish closure below 1.2450.
On September 25, the depicted bullish channel was invalidated as well with significant full-body bearish candlesticks which managed to achieve bearish closure below 1.2400.
Bearish persistence below 1.2400-1.2440 allowed more bearish decline to occur towards the price levels of 1.2210 where a recent Double-Bottom reversal pattern was originated with neckline located around 1.2400.
Two weeks ago, the price zone of 1.2400-1.2415 (reversal pattern neckline) was breached to the upside allowing further bullish advancement to occur towards 1.2800 then 1.300 where the GBP/USD looks overbought outside the depicted bullish channel.
This week, the GBP/USD pair is failing to achieve a successful bullish breakout above the depicted SUPPLY-zone (1.2980-1.3000) which corresponds to a previous Prominent TOP that goes back to May 2019.
That's why, sideway consolidations are expected to be demonstrated around the current price levels down to 1.2780 (Key-Level) until breakout occurs in either directions (More probably to the downside).
Initially, Bearish persistence below 1.2870 is needed to bring further bearish decline towards 1.2780 where an Intraday Key-Level comes to meet the pair.
Trade Recommendations:
Intraday traders are advised to wait for a bearish breakout below 1.2870 for a valid SELL entry.
T/P level to be placed around 1.2780 while S/L should be placed above 1.2920.
