17.10.201919:01 Forex Analysis & Reviews: October 17, 2019 : GBP/USD fails to achieve bullish breakout above the movement channel. Bearish pullback is expected to occur.

On September 20, Recent episode of bullish advancement was expressed inside the depicted bullish channel towards 1.2550 where a short-term reversal channel was demonstrated.

As anticipated, the reversal pattern was confirmed to the downside on September 23 demonstrating a successful bearish closure below 1.2450.

On September 25, the depicted bullish channel was invalidated with significant full-body bearish candlesticks which managed to achieve bearish closure below 1.2400.

Bearish persistence below 1.2400-1.2440 (Reversal-Pattern Neckline) allowed more bearish decline to occur towards the price levels of 1.2210 where a recent Double-Bottom reversal pattern was originated with neckline located around 1.2400.

Last week, the price zone of 1.2400-1.2415 (reversal pattern neckline) was breached to the upside allowing further bullish advancement to occur towards 1.2680.

Bullish persistence above 1.2680 enhances further bullish advancement towards 1.2846 (161% Fibonacci Expansion).

However, This week, signs of bearish rejection are being demonstrated around 1.2850 (upper limit of the depicted movement channel) where the GBP/USD pair is failing to achieve a successful bullish breakout outside the channel.

That's why, sideway consolidations may be demonstrated down to 1.2680-1.2620 until breakout occurs in either directions (More probably to the downside).

Bearish persistence below 1.2850 will probably bring further bearish decline towards 1.2680-1.2620 where the lower limit of the current bullish movement comes to meet the pair.

Trade Recommendations:

Intraday traders are advised to wait for a bearish breakout below 1.2780 for a valid SELL entry.

T/P levels to be placed around 1.2680 and 1.2620 while S/L should be placed above 1.2920.