In April 2020, the GBPUSD pair has been moving sideways within the depicted consolidation range extending between the price levels of 1.2265 and 1.2600.
On May 15, transient bearish breakout below 1.2265 (Consolidation Range Lower Limit) was demonstrated in the period between May 13 - May 26, denoting some sort of weakness from the current bullish trend.
However, immediate bullish rebound has been expressed around the price level of 1.2080 bringing the GBPUSD back above the depicted price zone of 1.2520-1.2600 which failed to offer sufficient bearish rejection.
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 targets were located around 1.2600 and 1.2520.
Recent bearish persistence below 1.2500 ( neckline of the reversal pattern ) paused the bullish outlook for sometime & enabled further bearish decline towards 1.2265.
However, significant bullish rejection was originated around 1.2265 bringing the GBP/USD pair back towards 1.2780 where a bearish Head & Shoulders pattern (with potential bearish target around 1.2265) was recently demonstrated.
This indicates a high probability of bearish reversal provided that early bearish breakout is achieved below 1.2600.
Trade recommendations :
Intraday traders can consider any bullish pullback towards the depicted Supply Level (1.2780) for a valid SELL Entry.
Stop Loss should be tight, it can be placed above 1.2850 while initial T/P level to be located around 1.2600, 1.2520 & 1.2400.
