Relevance up to 18:00 2021-01-06 UTC+3
In December, the price levels of (1.3380-1.3400) have prevented further bullish movement for a few weeks.Bearish target was projected towards1.3300. However, the pair has failed to pursue towards lower targets.
Instead, a bullish spike was expressed towards 1.3480-1.3500 where the upper limit of the depicted movement channel has previously provided temporary bearish pressure on the pair.
Shortly after, another bullish spike has recently been demonstrated towards 1.3600 where the upper limit applied considerable bearish rejection again.Recently, the GBPUSD pair looked overbought while consolidating above the key-level of 1.3400.
As expected, bearish reversal was recently initiated around 1.3600. A quick bearish decline was demonstrated towards 1.3200.
Intermediate-term outlook could turn into bearish if only the EUR/USD pair could maintain movement below 1.3400.
However, the pair has failed to maintain bearish decline below 1.3200.Instead, bullish persistence above 1.3400 invalidated the bearish scenario for the short-term.
Another temporary bullish movement is being expressed towards 1.3700 (the channel’s upper limit) where bearish rejection and a possible SELL Entry can be anticipated.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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