FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for January 11, 2013

The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the chart, the last push ended up forming an inverted hanging man daily candlestick indicating a false break above 1.6300.
On the 4H chart the GBP/USD pair expressed significant bearish price action reaction towards 1.6300 establishing a significant resistance zone.
Bullish retracement took place this week after testing 1.6000, which was capped around 1.6080 (backside of the broken bullish channel) then 1.6 was tested once more Yesterday. However, failure to consolidate below 1.6 again indicated a reversal for a retesting of 1.6170 - 1.6200 area as expected in Yesterday's article.
Price Level 1.6170 should be watched for bearish price action and a valid SELL entry with SL just located above 1.6220.

Price 1.6115 (being tested today) should be broken down early in order to confirm the bearish bias for today. However, failure to do so indicates a possible bullish double bottom pattern to be targeting at 1.6200-1.6230 levels.