Two weeks ago, the price zone of 1.2400-1.2415 (Double-Bottom pattern neckline) was breached to the upside allowing further bullish advancement to occur towards 1.2800 then 1.3000 where the GBP/USD looks overbought outside the depicted bullish channel.
Earlier This week, the GBP/USD pair has failed to achieve a persistent bullish breakout above the depicted SUPPLY-zone (1.2980-1.3000) which corresponds to a previous Prominent-TOP that goes back to May 2019.
Moreover, the depicted ascending wedge pattern has been activated indicating a high probability of bearish reversal around the price levels of 1.2950-1.2970.
That's why, a quick bearish movement was expected to originate around these price levels down to 1.2780 (Key-Level) which is currently being tested.
Any Bullish rejection to be expressed around the current price levels of 1.2780, indicates another temporary bullish movement towards 1.2980-1.3000 where another bearish swing can be initiated.
On the other hand, any earlierbearish breakout below 1.2780 enables further bearish decline towards 1.2600-1.2650 where bullish recovery should be anticipated.
Trade Recommendations:
Conservative traders are advised to look for a valid BUY entry around 1.2780 if significant bullish rejection is expressed.
Risky traders can wait for a bearish breakout below 1.2780 as a valid SELL entry with T/P levels projected towards 1.2650.
