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.
Yesterday, Intraday traders were advised to wait for bearish pullback towards the price levels of 1.2300-1.2280 where a low-risk short-term BUY trade could be taken.
This suggested bullish trade is currently running in profits. Further bullish advancement is expected to pursue initially towards the price levels around 1.2520.
On the other hand, any bearish breakdown below 1.2265 should be taken into consideration as it confirms the previously-mentioned double-top pattern.
Hence, This would probably enable further bearish decline eventually towards 1.2020 as a projection target for the reversal pattern.
Trade recommendations :
Intraday traders were advised to wait for the previous bearish movement to pursue towards the price levels of 1.2300-1.2280 where a low-risk BUY trade can be offered.
This bullish trade is currently running in profits. Next bullish targets are located around the price levels around 1.2520 and 1.2600 while S/L should be placed just below 1.2250.
