GBP/USD bounced off of a common support at 1.2080 this week, and there is a bit of a rebound against a downswing since December. Looking at the daily chart however, we can see that despite the buying this week, GBP/USD still looks bearish. In this scenario, we can consider selling on the rally.GBP/USD Daily Chart 1/12(click to enlarge)Neutral-Bearish:- The mode of GBP/USD is neutral-bearish, with emphasis on the bearish. - The prevailing trend has been bearish, but price has been consolidating from October to mid-December.- After mid-December, GBP/USD was in a bearish continuation breakout.- The daily RSI couldn't reach 70, which shows a failed attempt at bullish momentum.- Price held under the 100-day simple moving average (SMA), and returned below the 50-day SMA. Trade Considerations:- If we believe GBP/USD is indeed in a bearish continuation, or at least looking to retest 1.20, we can make an assumption that it will do so with lower highs and lower lows.- If so, we should put a stop above 1.24, let's say 1.2430.- If our entry is at 1.2330, we would be risking 100 pips.- Meanwhile, a target of 1.20 provides a potential reward of 330 pips. - We can look at 1.22 as a conservative target. This yields a potential of 130 pips.- When we average those two targets out, we still will get a reward to risk above 2:1. - With the technical picture being mostly bearish, a 2:1 reward to risk for a sell below the previous resistance pivot is not a bad idea.