On January 2nd, the market initiated the depicted uptrend line around 1.2380.
This uptrend line managed to push price towards 1.3200 before the GBP/USD pair came to meet the uptrend again around 1.2775 on February 14.
Another bullish wave was demonstrated towards 1.3350 before the current bearish pullback was demonstrated towards the uptrend again.
A weekly gap pushed the pair slightly below the trend line (almost reaching 1.2960) . However, significant bullish recovery was demonstrated Yesterday rendering the mentioned bearish gap as a false bearish breakout.
Bullish persistence above 1.3060 ( Fibonacci 50% ) is mandatory to pursue the bullish momentum towards 1.3130 then 1.3190-1.3200 where the next Fibonacci levels are located.
On the other hand, bearish breakout below 1.2990 (Fibonacci 50%) invalidates this bullish setup rendering the short term outlook bearish towards 1.2890 then 1.2770.
Trade Recommendations :
The GBP/USD pair remains bullish as long as price is maintained above 1.2990 (61.8% Fibonacci level).
Target levels are projected towards 1.3130, 1.3200 and 1.3250. H1 candlestick closure below 1.2990 invalidates this bullish setup as mentioned above.
The material has been provided by InstaForex Company - www.instaforex.com