FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for November 28, 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.
Then the narrow consolidation range 1.6025 - 1.5925 was broken to the downside with a potential target near the price level of 1.5780.
The false breakout above the short-term descending resistance depicted on the 4H chart was maintained at Daily Resistance Level 1.6160. It activated the bearish scenario, which anticipated further downside pressure supported by the breakdown below 50% Fibonacci (1.5930) that took place a week ago. It is important to notice that on Wednesday the pair managed to re-consolidate above this level again which was tested as newly-established support.
On the 4H chart the GBP/USD pair is trapped within narrow range between 50% and 61.8% Fibonacci levels, breakout in either direction should be watched. However, a possible Doubld Top pattern is about to be confirmed with 4H closure below 1.5995 which enhances the short-term bearish view for the pair to be targeting at 1.5940.

Breakdown below the Intraday Support Price Zone 1.5900 - 1.5930 and breakdown of Intraday Support around 1.5850 are necessary to maintain the long-term bearish movement.
Price levels around 1.5970 - 1.5600 constitute a strong DAILY resistance, hence providing a valid long-term SELL entry with SL located just above 1.6050.

Support: 1.5920, 1.5830,1.5800, 1.5760, and 1.5670.
Resistance: 1.6040, 1.6000, and 1.6030.