January 31, 2020 : GBPUSD demonstrating bullish pullback towards the depicted supply zone (1.3175-1.3200) to be watched for

By | January 31, 2020
InstaForex
January 31, 2020 : GBPUSD demonstrating bullish pullback towards the depicted supply zone (1.3175-1

Relevance up to 18:00 UTC–8

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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 18 – 23, bearish breakout below the depicted channel followed by initial bearish closure below 1.3000 were demonstrated on the H4 chart.

However, earlier signs of bullish recovery were manifested around 1.2900 denoting high probability of bullish pullback to be expected.

Thus, 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 allowed the recent Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and another bearish swing were suggested for conservative traders in previous articles.

Moreover, new descending highs were recently demonstrated around 1.3120 and 1.3085.

Conservative traders were advised to wait for bearish breakdown below 1.2980.

This would be needed first to enhance further bearish decline towards 1.2900, 1.2800 and 1.2780 where the backside of the previously-broken downtrend is located.

However, Yesterday, early signs of bullish recovery have been manifested around 1.2980-1.3000 (Bullish hammer followed by a Bullish Engulfing H4 candlestick).

In the Meanwhile, Intraday traders can watch the current bullish pullback towards the depicted price zone (1.3175 – 1.3200) where another episode of bearish rejection and a valid SELL entry can be considered.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Mohamed Samy,
Analytical expert
InstaForex Group © 2007-2020

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