Since May 17, the previous downside movement within the depicted bearish channel came to a pause allowing the recent sideway consolidation range to be established between 1.2750 – 1.2550.
On July 5, a bearish range breakout was demonstrated below 1.2550 (the lower limit of the depicted consolidation range).
Hence, quick bearish decline was demonstrated towards the price zone of 1.2430-1.2385 (the lower limit of the movement channel) which failed to provide consistent bullish demand for the GBP/USD.
Moreover, Bearish breakdown below 1.2350 facilitated further bearish decline towards 1.2320, 1.2270 and 1.2100 which correspond to significant key-levels on the Weekly chart.
The current price levels are quite risky/low for having new SELL entries. That’s why, Previous SELLERS were advised to have their profits gathered.
Last week, temporary signs of bullish recovery were being demonstrated around 1.2100 before Friday when another bearish movement could be demonstrated towards 1.2025.
Recent bullish recovery was demonstrated off the recent bottom (1.2025) bringing the GBP/USD pair back towards 1.2100 (recently-established SUPPLY Level).
This is supposed to enhance further bullish advancement towards 1.2230 then 1.2320 if sufficient bullish momentum is demonstrated above 1.2100.
Intraday traders are advised to look for early bullish breakout above 1.2100 then above 1.2230 for counter-trend BUY entries.
Conservative traders should wait for bullish pullback to pursue towards 1.2320 – 1.2350 for new valid SELL entries.
S/L should be placed above 1.2430. Initial T/P level to be placed around 1.2279 and 1.2130.