Relevance up to 08:00 2020-02-12 UTC–8
On December 13, the GBPUSD pair looked overpriced around the price levels of 1.3500 while exceeding the upper limit of the newly-established bullish channel.
On the period between December 18th – 23rd, bearish breakout below the depicted channel followed by temporary bearish closure below 1.3000 were demonstrated on the H4 chart.
However, immediate bullish recovery (around 1.2900) brought the pair back above 1.3000.
Bullish breakout above 1.3000 allowed the mentioned Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and a new wide-ranged movement channel were established between (1.3200-1.2980).
Moreover, new descending highs were recently demonstrated around 1.3200 and 1.3080.
During the past few days, signs of bullish rejection were temporarily manifested around 1.2980-1.3000 before obvious bearish breakdown could occur.
Intraday technical outlook is supposed to remain bearish as long as the pair maintains its movement below 1.3080 (the most recently-established descending high).
Conservative traders were advised to wait for bearish breakdown below 1.2980 as a signal for further bearish decline towards 1.2890 and possibly 1.2780.
In the Meanwhile, Intraday traders were advised to watch price action carefully around 1.2890 where the lower limit of the movement channel comes to meet the pair.
Since Yesterday, early signs of bullish rejection have been expressed allowing another bullish pullback to occur towards 1.3000 where price action should be watched carefully.
On the other hand, any bearish decline towards the next key-level (around 1.2780) should be watched for bullish rejection and a valid BUY entry.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Mohamed Samy,
InstaForex Group © 2007-2020
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