In the period between October 17 to December 4, the GBP/USD pair has been trapped between the price levels of 1.2780 and 1.3000 until December 4 when bullish breakout above 1.3000 was achieved.
Moreover, a newly-established short-term bullish channel was initiated on the chart.
The GBPUSD has recently exceeded the upper limit of the depicted bullish channel on its way towards 1.3500 where the pair looked quite overpriced.
This was followed by successive bearish-engulfing H4 candlesticks which brought the pair back towards 1.3170 quickly.
Further bearish decline was pursued towards 1.3000 which got broken to the downside as well.
Technical short-term outlook turned into bearish since bearish persistence below 1.3000 was established on the H4 chart.
Hence, further bearish decline was expected towards 1.2840 – 1.2800.
However, earlier signs of bullish recovery manifested around 1.2900 denoted high probability of bullish breakout to be expected.
Intraday technical outlook turned into bullish after the GBP/USD has failed to maintain bearish persistence below the newly-established downtrend line.
That’s why, bullish breakout above 1.3000 was anticipated. Thus allowing the current Intraday bullish pullback to pursue towards 1.3190-1.3200 where bearish rejection and another bearish swing can be watched by conservative traders.
Bearish reversal scenario around 1.3200 is supported by the recent negative divergence as depicted on the chart. If so, Intraday bearish target would be projected towards 1.3000.