Since Mid-November, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2880 (the upper limit of the depicted consolidation range).
On December 6, the GBP/USD pair failed to demonstrate a successful breakout above 1.2780 (79.6% Fibonacci). That's why, a significant bearish decline was demonstrated towards the price level of 1.2500.
This bearish decline extended down to the price level of 1.2480 before bullish recovery could take place on December 12.
The current scenario could pursue as a bearish flag continuation pattern provided that bearish persistence below 1.2660 (corresponding to a prominent daily low) is maintained on a daily basis.
On the other hand, the current bullish pullback towards the price zone of 1.2660-1.2700 can be watched for a valid SELL entry as this price zone corresponds to the backside of the broken consolidation range as well as the depicted downtrend on the H4 chart.
Projected target for the bearish flag continuation pattern is located around 1.2300. Initial bearish destination is located around 1.2580 while S/L should be set as daily closure above 1.2800.
The material has been provided by InstaForex Company -
www.instaforex.com