In the period between December 18th - 23rd, bearish breakout below the depicted previous bullish channel followed by quick bearish decline below 1.3000 were demonstrated on the H4 chart.
However, Immediate bullish recovery (around 1.2900) brought the pair back towards 1.3250 (backside of the broken channel) where the current wide-ranged movement channel was established below 1.3200.
Since January 13, progressive bearish pressure has been built over the price zone of 1.2980-1.3000 until February 5.
On February 6, bearish breakdown below 1.2980 enhanced further bearish decline towards 1.2890 (the lower limit of the movement channel) where two episodes of bullish rejection were manifested on February 10th and 20th.
Shortly after, the lower limit of the channel around 1.2850 has failed to provide enough bullish Support for the GBPUSD pair.
That's why, further bearish decline was expressed towards the nearest DEMAND level around 1.2780 where significant bullish rejection and an inverted Head & Shoulders reversal pattern was demonstrated in the period between Feb. 28 - March 4 especially after The Fed unexpectedly cut rates by half-point for the first time since 2008 to protect against an anticipated slowdown of US economy for the fear of a possible Corona Virus outbreak.
Hence, a quick bullish movement was demonstrated towards the price zone of 1.2980-1.3000 which has temporarily failed to offer enough bearish pressure on the GBPUSD pair.
Further bullish advancement was demonstrated towards 1.3200 where significant bearish pressure brought the pair back below 1.3000 via quick bearish engulfing H4 candlesticks.
The pair remains trapped between 1.2830 (the lower limit of the current movement channel) and 1.3000 (Prominent Key-Zone) until breakout occurs in either directions.
Based on the recent aggressive bullish price action around the lower limit of the current channel near 1.2830, a possible bullish breakout above 1.3000 is more probable to be expected. If so, another bullish visit towards 1.3110 would he expected.
On the other hand, bearish persistence below 1.2980 enhances the bearish side of the market again towards 1.2870 then 1.2830.
