FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for November 7, 2012

The GBP/USD pair has been fluctuating heavily within the past few weeks after the broken DAILY bullish channel was retested around the price zone of 1.6160 - 1.6180, failing to maintain a directional trend.
The false breakout above the short-term descending resistance depicted on the chart was maintained at Daily Resistance Level 1.6160 activating the bearish scenario, which anticipates further downside pressure this week, possibly towards 1.5850 initially.
The price action should be watched carefully around 1.5960 which is considered to be the key level of the coming movement. A breakdown below allows and confirms the bearish scenario in the short term.
Consolidation below the Intraday Resistance Price Level 1.6040 (being tested now) is necessary to resume the expected bearish movement

Support: 1.5975 and 1.5920.
Resistance:1.6050,1.6075, and 1.6125.