On December 12, the previously-dominating bearish momentum came to an end when the GBP/USD pair visited the price levels of 1.2500 where the backside of the broken daily uptrend was located.
Since then, the current bullish swing has been taking place until January 28 when the GBP/USD pair was almost approaching the supply level of 1.3240 where the recent bearish pullback was initiated.
Shortly after, the GBP/USD pair lost its bullish persistence above 1.3155. Hence, the short-term scenario turned bearish towards 1.2920 (38.2% Fibonacci) then 1.2820-1.2800 (50% Fibonacci level) within the depicted H4 bearish channel.
On February 15, significant bullish recovery was demonstrated around 1.2800-1.2820 (Fibonacci 50% level) resulting in a Bullish Engulfing daily candlestick.
This initiated the current bullish breakout above the depicted H4 bearish channel. Quick bullish movement was demonstrated towards 1.3155 and remaining bullish targets are projected towards 1.3240 and 1.3290.
Bullish persistence above the depicted supply levels (1.3240-1.3155) is a MUST so that the current bullish movement can pursue towards higher bullish targets.
Any bearish breakdown below 1.3155 invalidates the whole bullish scenario for the short-term allowing sideway consolidations to occur.
Trade Recommendations :
Intraday traders was recommended to watch for the recent bullish breakout above 1.3100 for a bullish continuation position aiming for 1.3240 as initial target. S/L should be advanced to 1.3170 to secure some profits.
Today, bullish breakout above 1.3240 on H4 chart should be considered for another continuation BUY position. T/P levels to be located around 1.3290, 1.3390. S/L to be located below 1.3155.The material has been provided by InstaForex Company - www.instaforex.com