FX.co ★ August 31, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

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 bringing the GBP/USD back towards 1.2780 (Previous Key-Level) where another episode of bearish pullback was initiated.

Short-term bearish movement was expressed towards 1.2265 where Significant bullish rejection was originated bringing the GBP/USD pair back towards 1.2780 where this key-level failed to offer enough bearish rejection.

Intermediate-term Technical outlook for the GBP/USD pair remains bullish as long as bullish persistence is maintained above 1.2780 (Depicted KeyLevel) on the H4 Charts.On the other hand, the pair looks overbought after such a quick bullish movement while approaching the upper limit of the current expanding channel around 1.3320-1.3340.Hence, upcoming bearish reversal shouldn't be excluded provided that sufficient bearish reversal signs are expressed around the current depicted pattern upper limit.

Trade recommendations :

Intraday traders are advised to look for signs of bearish rejection around the current price levels (1.3340) as a valid SELL Entry.

Initial T/p level is to be located around 1.3200 and 1.3100. On the other hand, bullish persistence above 1.3400 invalidates this trading scenario.