On September 21, the GBP/USD pair failed to demonstrate sufficient bullish momentum above 1.3296. Since then, the short-term outlook turned to become bearish under the depicted daily downtrend.
On H4 chart, the GBP/USD pair looked oversold around the price levels of 1.2700 where profitable BUY entries were suggested.
A quick bullish movement was demonstrated towards the price level of 1.3170-1.3200 where another descending high around the depicted downtrend was established.
This initiated the current bearish pullback towards the depicted consolidation-zone of (1.2750-1.2880) where the current sideway movement within the depicted H4 channel was initiated.
Recently, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2880 (the upper limit of the current consolidation range).
Yesterday, a false bearish breakout was demonstrated below 1.2720. Moreover, early signs of bullish recovery are being demonstrated today.
Bullish persistence above 1.2780 (78.6% Fibo level) is mandatory to enhance the bullish side of the market towards 1.2880 and 1.2940 where new trading decisions should be taken upon price action.
On the other hand, the current scenario may pursue a bearish flag continuation pattern provided that bearish breakout below 1.2730 is achieved on lower timeframes quickly.
Projected target for the bearish flag continuation pattern is initially located around 1.2600.
The material has been provided by InstaForex Company -
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