Previously, the GBP/USD pair remained under bearish pressure to challenge the significant daily bottom established around 1.1750 which was bypassed shortly after.
However, considerable bullish momentum was initiated around 1.0400-1.0600 that could prevent further bearish decline.
As the market was pursuing the current bullish movement, the newly-established ascending bottoms around 1.1150 and 1.1750 remained defended by the bulls. That's why, further bullish continuation above 1.1765 was expected.
Price action around 1.2340 was being watched for bearish rejection and a short-term SELL Entry. It was running in profits until another bullish bounce has been expressed.
Recently, the GBPUSD bulls failed to record a new high above 1.2200. Instead, a descending high was established around the same price level.
Bearish pullback pursued towards the price levels of 1.1800. This was considered for a valid BUY Entry with initial target around 1.2350.
Please take into consideration that bullish breakout above 1.2340 will probably enable further advancement towards 1.2700. otherwise, another bearish correction towards 1.1750-1.1800 may be expressed.
