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 the other hand, two unsuccessful bearish breakout attempts were demonstrated below 1.2720 during last week's consolidations.
During Friday's consolidations, the GBP/USD pair failed to fixate above 1.2780 (79.6% Fibonacci). That's why, a significant decline was demonstrated below 1.2700-1.2660 (Historical bottoms) during this week's consolidations.
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 daily basis.
Any 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 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