On March 29, a visit towards the price levels of 1.2980 (the lower limit of the newly-established bearish movement channel) could push the GBPUSD pair again towards the upper limit of the minor bearish channel around (1.3160-1.3180).

Since then, Short-term outlook has turned into bearish within the depicted movement channel with intermediate-term bearish target near 1.2850.

On April 26, another bullish pullback was initiated towards the price zone of 1.3130-1.3170 where the depicted bearish Head and Shoulders reversal pattern was demonstrated on the H4 chart with neckline located around 1.2980-1.3020.

Bearish breakdown below 1.2980 allowed the recent significant bearish movement to occur towards the lower limit of the long-term channel around (1.2700-1.2650) where temporary bullish rejection was expressed.

Shortly after, temporary bullish breakout above 1.2650 was demonstrated for a few trading sessions. This enhanced the bullish side of the market towards 1.2750 which prevented further bullish advancement.

Moreover, recent bearish decline below 1.2600 was demonstrated on Friday thus invalidating the mentioned bullish scenario for the short-term.

As long as bearish persistence below 1.2650 is maintained on H4 chart, further bearish decline should be expected towards 1.2535 then 1.2485.

SELL positions shouldn't be considered at such low price levels unless bearish breakout below 1.2570 becomes confirmed on higher timeframes (low probability).

For the bullish side of the market to regain dominance, a quick bullish breakout above 1.2650 is mandatory. Otherwise, the mentioned bearish targets shall be visited soon.

Trade Recommendations:

Conservative traders should wait for a valid BUY entry upon bullish breakout above 1.2650.

T/P levels to be located around 1.2750, 1.2820, 1.2900 and 1.2940. S/L should be placed below 1.2600.