In the period between October 17 to December 4, the GBP/USD pair has been trapped between the Key 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.
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.
This was followed by successive bearish-engulfing H4 candlesticks which brought the pair back towards 1.3170 quickly.
Further bearish decline was pursued towards 1.3000 which got broken to the downside temporarily.
That's why, Short-term outlook turned into bearish since bearish persistence below 1.3000 was demonstrated on the H4 chart.
However, earlier signs of bullish recovery manifested around 1.2900 denoted high probability of bullish breakout to be expected.
Thus, Intraday technical outlook turned into bullish after the GBP/USD has failed to maintain bearish persistence below the newly-established downtrend line.
That's why, bullish breakout above 1.3000 was anticipated. Thus allowing the recent Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and another bearish swing were suggested for conservative traders in the previous articles.
Intraday bearish target remains projected towards 1.3000 and 1.2980 provided that the current bearish breakout below 1.3170 is maintained.
Bearish breakdown below 1.2980 enhances further bearish decline towards 1.2900 where the backside of the previously-broken downtrend.
On the other hand, earlier bullish pullback towards the depicted price zone (1.3170 - 1.3200) should be watched for bearish rejection and another valid SELL entry.
