Since October 21, the GBP/USD pair has failed to achieve a persistent bullish breakout above the depicted SUPPLY-zone (1.2980-1.3000) which corresponds to a previous Prominent-TOP that goes back to May 2019.
Moreover, an ascending wedge reversal pattern was confirmed on October 22. This indicated a high probability of bearish reversal around the mentioned price zone.
Hence, a quick bearish movement was anticipated towards 1.2780 (Key-Level) where bullish recovery was recently demonstrated on two consecutive visits.
Since then, the GBP/USD pair has been trapped between the mentioned price levels (1.2780-1.2980) until now.
Technical outlook remains bearish as long as consolidations are maintained below 1.3000 on the H4 chart.
Moreover, negative divergence was being demonstrated on the H4 chart. That’s why, high probability of bearish rejection existed around the price levels of (1.2980-1.3000).
A quick bearish breakout below 1.2875 (short-term uptrend) was needed to enable further bearish decline towards 1.2780. However, early bullish recovery was demonstrated around 1.2825.
On the other hand, the current bullish pullback towards 1.2900-1.2950 (backside of a broken uptrend) should be watched for early bearish rejection and another valid SELL entry.
Please note that any bullish closure above 1.2950 invalidates the bearish scenario for the short-term.