Previously, The GBP/USD pair was testing the depicted downtrend line which came to meet the pair around 1.3025-1.3090. This week, the pair has been demonstrating a successful bullish breakout so far.
This price zone (1.3025-1.3090) also corresponds to 50% and 61.8% Fibonacci levels. Currently, this price zone turned to become a prominent demand zone to be watched for bullish price action.
The GBP/USD pair continues to demonstrate its uptrend within the depicted bullish channel on H4 chart.
Please take into consideration that the lower limit of the depicted channel comes to meet the GBP/USD pair around 1.3190 (key-level for today's consolidations). This price level should be defended by the bulls to maintain enough bullish momentum.
As long as the current bullish breakout above 1.3090 (Demand level-1) is maintained, further bullish advance should be expected towards 1.3300 and 1.3390 (reversal pattern final target).
On the other hand, any bearish decline below 1.3190 (lower limit of the channel) leads directly towards 1.3090 (Demand level-1).
Moreover, any bearish decline below 1.3090 (Demand level-1) will probably invalidate the bullish scenario for the short-term. Hence, the pair would have lower targets around 1.3010 (Demand level-2).
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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