Few weeks ago, the neckline of the depicted Double-Bottom pattern (1.2400-1.2415) was breached to the upside allowing further bullish advancement to occur towards 1.2800 then 1.3000 where the GBP/USD pair looked OVERBOUGHT.
Earlier last 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 reversal pattern has been confirmed indicating a high probability of bearish reversal around the price levels of 1.2950-1.2970.
That's why, a quick bearish movement was initiated towards 1.2780 (Key-Level) where bullish recovery and a sideway consolidation Range are currently being demonstrated.
The current Bullish rejection around the price levels of 1.2780, indicates another temporary bullish movement near 1.2980-1.3000 where another long-term bearish swing can be initiated.
On the other hand, earlier bearish breakout below 1.2780 enables further bearish decline towards 1.2600-1.2650 where bullish recovery should be anticipated.
Trade Recommendations:
Risky traders were advised to look for a valid BUY entry anywhere around 1.2780. S/L should be advanced to entry levels to offset the associated risk.
On the other hand, Intraday traders can wait for a bearish breakout below 1.2780 as a valid SELL entry with T/P levels projected towards 1.2650.
