In the period between October 17 to December 4, the GBP/USD pair has been trapped between the price levels of 1.2780 and 1.3000 until December 4 when bullish breakout above 1.3000 was achieved.
Moreover, a newly-established short-term bullish channel was initiated on the chart. In which, the GBPUSD has recently hit the price level of 1.3500.
Technical outlook remains bullish as long as consolidations are maintained above 1.3170-1.3190 on the H4 chart.
On the other hand, the GBPUSD has recently exceeded the upper limit of the depicted bullish channel on its way towards 1.3500 where the pair looked quite overpriced.
Moreover, this was followed by successive bearish-engulfing H4 candlesticks which brought the pair back towards 1.3300 quickly.
That's why, further bearish decline should be expected towards 1.3170-1.3190 where recent price action should be considered for a possible bullish rejection.
Intraday bullish pullback is anticipated to occur towards 1.3250-1.3280 where another bearish swing can be initiated.
On the other hand, Bearish closure below 1.3170 (Key-level) is mandatory before short-term outlook can turn into bearish again. Bearish projection target would be located around 1.2980-1.3000.
