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 On Monday rendering the mentioned bearish gap as a false bearish breakout.
As expected, bullish persistence above 1.3060 ( Fibonacci 50% ) allowed the GBPUSD pair to pursue the bullish momentum towards 1.3130 then 1.3190-1.3200 where the next Fibonacci levels are located.
Today, Early bullish breakout above 1.3210 (23.6% Fibonacci) is needed to maintain the current bullish momentum towards 1.3340 ( prominent weekly high).
Otherwise, bearish breakout below 1.3050 (Fibonacci 50%) invalidates this bullish setup rendering the short term outlook bearish towards 1.2890 then 1.2770.
Trade Recommendations :
The GBPUSD pair remains bullish as long as price is maintained above 1.3060 (50% Fibonacci level).
Target levels are projected towards 1.3300 and 1.3350. H1 candlestick closure below 1.3060 invalidates this bullish setup as mentioned above.
The material has been provided by InstaForex Company - www.instaforex.com