Recently, Bullish breakout above 1.2265 has enhanced many bullish movements up to the price levels of 1.2520-1.2590 where temporary bearish rejection as well as a sideway consolidation range were established (In the period between March 27- May 12).
Shortly after, transient bearish breakout below 1.2265 (Consolidation Range Lower Limit) was demonstrated in the period between May 13 – May 26.
However, immediate bullish rebound has been expressed around the price level of 1.2080. This brought the GBPUSD back above the depicted price zone of 1.2520-1.2600 which failed to offer sufficient bearish rejection.
Hence, short-term technical outlook has turned into bullish, further bullish advancement may be expressed towards 1.2780 (Previous Key-Level) where signs of bearish rejection are being expressed.
Short-term bearish pullback is currently being expressed, initial bearish destination would be around 1.2600 and probably 1.2520 if sufficient bearish momentum is maintained.
On the other hand, any bearish breakdown below 1.2520 pauses the bullish outlook for sometime and should be considered as an early exit signal for short-term buyers.
Trade recommendations :
Intraday traders can wait for more bearish pullback towards the price zone around 1.2520 ( Backside of the broken uptrend, considered as a recent demand level) for a low-risk BUY Entry.
T/P level to be located around 1.2600, 1.2715 and 1.2750 while S/L should be placed below 1.2450.