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Since Mid-November, Successive Lower Highs were demonstrated around the price levels of 1.3060, 1.2920 and 1.2800 maintaining movement within the depicted H4 bearish channel (The RED one).
Shortly after, a quick bearish decline was demonstrated towards the price level of 1.2500 where bullish recovery (Bullish Head & Shoulders pattern) could take place on December 12.
Hence, a successful bullish breakout above the depicted bearish channel was demonstrated on December 24.
Last week, another bullish breakout above 1.2720 was attempted to resume the bullish scenario of the market aiming towards 1.2880 and 1.3000.
For the bullish scenario to remain valid, bullish persistence above 1.2800 (Mid-Range) and 1.2880 (the upper limit of the depicted range) should be maintained on the H4 chart.
Strong bullish breakout above 1.2880 is mandatory for Buyers as a valid BUY signal to look for further bullish advancement towards 1.3020 where the depicted downtrend (in Blue) comes to meet the GBP/USD pair.
On the other hand, any bearish decline below 1.2800 invalidates the bullish scenario bringing the GBP/USD pair again into sideway consolidations that may extend down towards 1.2720 (Lower limit of the depicted consolidation range).
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