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 bringing the GBP/USD back towards 1.2780 (Previous Key-Level) where another episode of bearish pullback was initiated.
Short-term bearish movement was expressed towards 1.2265 where Significant bullish rejection was originated bringing the GBP/USD pair back towards 1.2780 where this key-level failed to offer enough bearish rejection.
Intermediate-term Technical outlook for the GBP/USD pair remains bullish as long as bullish persistence is maintained above 1.2780 (Depicted KeyLevel) on the H4 Charts.
On the other hand, the pair looks overbought after such a quick bullish movement while approaching the current price levels.Hence, upcoming bearish reversal shouldn't be excluded provided that sufficient bearish reversal signs are expressed around the current depicted pattern upper limit.
Trade recommendations :
Intraday traders are advised to look for signs of bearish rejection around the current price levels (1.3440) as a valid SELL Entry.
Initial T/p level is to be located around 1.3300, 1.3200 and 1.3100. On the other hand, bullish persistence above 1.3450 invalidates this trading scenario.
