Relevance up to 18:00 2020-02-07 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 recent sideway consolidation range 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.
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).
That’s why, 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.
During the past few days, signs of bullish rejection were temporarily manifested around 1.2980-1.3000 before obvious bearish breakdown could occur.
That’s why, the ongoing bearish breakdown below 1.2980 is more probable to persist towards the depicted price level (1.2890) based on the recent price action.
In the Meanwhile, Intraday traders should watch price action carefully around 1.2890 where the lower limit of the movement channel may provide some bullish rejection before further bearish decline towards 1.2780 can be expressed.
*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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