FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for December 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.
On the mid-term aspect consolidation is again above 1.5970. Getting back inside the previous consolidation range indicates high probability that the upper limit around 1.6160 may be visited soon after bears around price level 1.6070 failed to defend this price zone.
On the 4H chart the GBP/USD pair was trapped within narrow range between 50% and 61.8% Fibonacci levels, bullish breakout above 1.6070 took place Monday. This renders price zone 1.6040-1.6020 (the backside of the upper limit of the broken 4H bearish channel) a newly established intraday-support and a considerable zone to be watched for the price action on retesting.
On the 4H chart, there was bearish Head and Shoulders reversal pattern which was confirmed by breakdown below 1.6080 and managed to hit its full target at 1.6020 today.
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.

Support: 1.6080, 1.6050, 1.6000, and 1.5930.
Resistance: 1.6170, 1.6200, and 1.6265.