On July 5, a consolidation range bearish breakout was demonstrated below 1.2550 corresponding to the lower limit of the depicted consolidation range.
Moreover, Bearish breakdown below 1.2385 (Prominent Bottom) facilitated further bearish decline towards 1.2320, 1.2210 and 1.2100 which corresponded to significant key-levels on the Weekly chart.
The previously-mentioned price levels were risky for having new SELL entries. That’s why, Long-term SELLERS were advised to have their profits gathered few weeks ago.
In Early August, a temporary consolidation-range was established above 1.2100 before August 9 when temporary bearish movement was executed towards 1.2025.
Recent bullish recovery was demonstrated off the recent bottom (1.2025).
This brought the GBP/USD pair back above 1.2100 (Lower limit of the recently established consolidation-zone).
As expected, further bullish advancement was demonstrated towards 1.2230 then 1.2280 where recent bearish rejection was manifested towards 1.2215-1.2200.
For the intermediate-term, Further bullish advancement is expected to pursue towards 1.2320 then 1.2380 as long as the current bullish momentum above 1.2215 and 1.2160 (the recent consolidation range pivot-point) is maintained on a daily basis.
Otherwise, If bearish rejection is demonstrated around 1.2215 (backside of the depicted broken uptrend line), another quick bearish decline would be anticipated towards 1.2100.
On the other hand, If the current bullish movement pursued further bullish momentum, price action should be watched cautiously around 1.2380 (being a correspondent to a broken Key-Support dating back to July 17) where bearish rejection may originate
Intraday traders were advised to look for a valid BULLISH entry anywhere around 1.2200-1.2170.
Next T/P level to be placed around 1.2280, 1.2340 and 1.2385 while S/L should be placed below 1.2100.