Recently, Bullish breakout above 1.2265 has enhanced many bullish movements up to the price levels of 1.2520-1.2590 where temporary bearish rejection as well as a sideway consolidation range were established (In the period between March 27- May 12).
Shortly after, transient bearish breakout below 1.2265 (Consolidation Range Lower Limit) was demonstrated in the period between May 13 - May 26.
However, immediate bullish rebound has been expressed around the price level of 1.2080.
This brought the GBPUSD back above the depicted price zone of 1.2520-1.2600 which failed to offer sufficient bearish rejection.
Hence, short-term technical outlook has turned into bullish, further bullish advancement was expressed towards 1.2780 (Previous Key-Level) where signs of bearish rejection were expressed.
Short-term bearish pullback was expressed, initial bearish destination was located around 1.2600 and 1.2520.
Moreover, a bearish Head & Shoulders pattern (with potential bearish target around 12265) was recently demonstrated on the chart.
That's why, bearish persistence below 1.2500 ( neckline of the reversal pattern ) was needed to pause the bullish outlook for sometime to enable further bearish decline.
However, significant bullish rejection around 1.2265 brought the GBP/USD pair back towards 1.2490.
Any bullish pullback towards 1.2520-1.2550 (recent supply zone) should be watched by Intraday traders for a valid SELL Entry.
Trade recommendations :
Intraday traders can wait for the current bullish pullback towards 1.2520-1.2550 (recent supply zone) for another valid SELL Entry.
S/L should be placed above 1.2600 while T/P level to be located around 1.2450 & 1.2265.
