Few weeks ago, Further Bullish advancement was demonstrated towards 1.2650 then 1.3000 after the neckline of the depicted Double-Bottom pattern (1.2400-1.2415) was breached to the upside.
Since October 21, 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.
Instead, an ascending wedge reversal pattern was confirmed on October 22. This indicated a high probability of bearish reversal around the mentioned price zone.
Hence, a quick bearish movement was anticipated towards 1.2780 (Key-Level) where bullish recovery was recently demonstrated on two consecutive visits.
Recent bullish rejection around the price levels of 1.2780 indicated a bullish movement towards 1.2980-1.3000 where another long-term bearish swing was initiated towards 1.2780 as expected.
Since then, the GBP/USD pair has been trapped between the mentioned price levels (1.2780-1.2980) until now.
Technical outlook remains bearish as long as consolidations are maintained below 1.3000 on the H4 chart.
Moreover, negative divergence is being demonstrated on the H4 chart. That's why, high probability of bearish rejection exists around the current price levels 1.2980-1.3000.
A quick bearish breakout below 1.2875 (short-term uptrend) is needed to enable further bearish decline towards 1.2780.
