FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for December 14, 2012

The GBP/USD pair has been fluctuating heavily within the past few weeks failing to maintain a directional long-term trend.
On the mid-term aspect consolidation is again above 1.5970. Getting back inside the previous consolidation range indicated high probability that the upper limit around 1.6160 would be visited and it took place this week.
The GBP/USD pair has been consolidating just higher than the previous week's high 1.6125 recording a high at 1.6167 where significant bearish price action was expressed. Further bullish domination required fixation above 1.6125.
On the 4H chart the GBP/USD pair expressed significant bullish reaction towards price zone between 50% and 61.8% Fibonacci levels, and expressed equivalent bearish reaction towards 1.6160 which suggests that the current bearish move will be targeting around 1.6060.
Price zone 1.6160-1.6180 is rendered as a strong daily resistance. That is why it was suggested as a valid zone for a SELL entry.
Breakdown below the Intraday Support Price Zone 1.6000 - 1.6040 (the lower limit of the current 4H bullish channel) is necessary to maintain the long-term bearish movement.


Technical resistance levels: 1.6160 1.6185, and 1.6320.
Technical support levels: 1.6080, 1.5996 1.5873, and 1.5740.