Recently, the GBPUSD has reached new LOW price levels around 1.1450, slightly below the solid Previous Weekly Low (1.1650) achieved in September 2016.
That's when the pair looked very OVERSOLD around the price levels of 1.1450 where a double-bottom reversal pattern was demonstrated.
Bullish breakout above 1.1900 invalidated the bearish scenario temporarily & enabled a quick bullish movement to occur towards 1.2260.
Technical outlook remains bullish as long as bullish persistence is maintained above 1.1890-1.1900 (Double-Bottom Neckline) on the H4 Charts.
Bullish persistence above 1.2265 has enhanced another bullish movement up to the price levels of 1.2520-1.2590 where significant bearish rejection as well as a quick bearish decline were previously demonstrated (In the period between 14th - 21 April).
Currently, A Bearish Double-Top reversal pattern may be in progress. The pair may be demonstrating the right TOP of the pattern.
Hence, Bearish persistence below 1.2265 (Reversal Pattern Neckline) is needed to enhance another bearish movement towards 1.2100, 1.2000 then 1.1920. However, recent bullish price action brought the GBP/USD pair back towards 1.2600 where evident bearish rejection was manifested as we expected in previous articles.
Intraday traders should be waiting for more bearish pullback towards the price levels of 1.2300-1.2280 where a low-risk short-term BUY trade can be offered.
On the other hand, bearish breakdown below 1.2265 confirms the previously-mentioned double-top pattern. This will probably enable further bearish decline eventually towards 1.2020 as a projection target for the reversal pattern.
Trade recommendations :
Intraday traders were advised to look for bearish rejection around the Depicted SupplyZone (anywhere around 1.2550) as a short-term SELL signal. It's already running in profits.
Remaining T/P level to be located around 1.2300 while S/L should be lowered to 1.2500 to offset the associated risk.
Conservative BUYERS should be waiting for the current bearish movement to pursue towards the price levels of 1.2300-1.2280 where a low-risk BUY trade can be offered.
