FX.co ★ May 7, 2021 : GBP/USD Intraday technical analysis and trade recommendations.

Previous bullish trials for retesting of 1.3900 should have given many valid SELL Entries as suggested in previous article.

Bearish Persistence below 1.3820 favoured bearish decline towards 1.3600. Hence, Bearish breakout below 1.3600 was needed to enhance further bearish decline towards 1.3500 and probably 1.3400.

However, the GBPUSD pair was contained above the demand level of (1.3660) and below the key-level around 1.3900 before a temporary bullish spike could reach the price level of 1.4000 earlier last week.

This failed bullish spike above 1.3900 has re-tested the backside of the depicted broken channel which applied significant bearish pressure on the pair.

By the end of last week, temporary signs of bullish breakout above 1.3950 were witnessed. However, this turned out to be a bullish trap once the GBUSD pair returned below 1.3950 again.

Yesterday, the GBPUSD was trapped between the depicted two price levels ( 1.3880 and 1.3950 ) until bullish breakout occurred earlier Today.

Further bullish advancement should be anticipated towards 1.4050 then 1.4100 where the lower limit of the recently-broken channel is located.