Two weeks ago, a quick bearish decline was demonstrated towards 1.0965 – 1.0950 where the backside of the broken channel came to meet the EURUSD pair again.
Risky traders were advised to look for a valid BUY entry anywhere around the price levels of 1.0950. All T/p levels were successfully reached within the recent bullish movement during last weeks’ consolidations.
Earlier last week, the EUR/USD pair was testing the backside of both broken trends around 1.1060-1.1080 where significant bearish pressure pushed the pair directly towards 1.0940 (Prominent Weekly Bottom).
Bearish Breakdown below the price level of 1.0940 was needed to enhance further bearish decline towards 1.0900 and 1.0840 (Fibonacci Expansion Key-Levels).
However, SIGNIFICANT bullish rejection was demonstrated as a quick bullish spike towards 1.1100 where a recent episode of bearish rejection was expressed.
Currently, the GBPUSD is trapped within a narrow consolidation range extending between 1.1090 – 1.0995 until breakout occurs in either directions.
Bearish Breakout below 1.1030 is needed to render the recent bullish spike as a bullish trap. If so, bearish decline would be expected initially towards 1.0940-1.0920.
On the other hand, Bullish persistence above 1.1080 gives an early signal of short-term bullish reversal possibility as a bullish double-bottom pattern with a projected target towards 1.1175.