13.07.202017:52 Forex Analysis & Reviews: July 13, 2020 : GBP/USD bulls are testing the mid-range level at 1.2650, would it hold ?

The previous bullish breakout above 1.2265 has enhanced bullish movement up to the price levels of 1.2520-1.2590 where temporary bearish rejection as well as a sideway consolidation range were established (In the period between March 27- May 12).

Shortly after, transient bearish breakout below 1.2265 (Consolidation Range Lower Limit) was demonstrated in the period between May 13 - May 26 denoting some sort of weakness from the current bullish trend.

However, immediate bullish rebound has been expressed around the price level of 1.2080 bringing the GBPUSD back above the depicted price zone of 1.2520-1.2600 which failed to offer sufficient bearish rejection, and the broken uptrend line as well.

Further bullish advancement was expressed towards 1.2780 (Previous Key-Level) where signs of bearish rejection were expressed.

Short-term bearish pullback was expressed, initial bearish d located around 1.2600 and 1.2520.

Moreover, another bearish Head & Shoulders pattern (with potential bearish target around 1.2265) was recently demonstrated around the same price the pair is approaching Today.

Recent bearish persistence below 1.2500 ( neckline of the reversal pattern ) paused the bullish outlook for sometime & enabled further bearish decline towards 1.2265.

However, last week, significant bullish rejection was originated around 1.2265 bringing the GBP/USD pair back towards 1.2600 - 1.2620 where a cluster of resistance levels are located.

Signs of bearish rejection should be watched around the current price zone of 1.2620 - 1.2650 (Mid-channel zone) as it indicates a high probability of bearish reversal.

Trade recommendations :

Intraday traders can consider the current bullish pullback towards the depicted Supply Zone (1.2600-1.2650) for a valid SELL Entry.

Stop Loss should betight, it can be placed above 1.2700 while initial T/P level to be located around 1.2450 & 1.2265.