FX.co ★ GBP/USD intraday technical analysis and trading recommendations for January 22, 2013

The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the daily chart, the last push has ended up expressing significant bearish price action indicating a false break above 1.6300 establishing a significant resistance zone.

Price levels 1.6115, 1.6080, and 1.6000 have been broken down confirming the bearish bias for the pair; these levels were lost as support triggered considerable bearish momentum which was apparent on Friday.
It is important to note that the pair has already broken down a long-term uptrend line that came to meet the pair around 1.6000, the loss of which opens the way towards 1.5910 then 1.5825. However, consolidation below 1.5910 (Intraday resistance) is necessary to maintain the bearish momentum for this week.

Considering the possible extension of the current bearish move since the 1.6330 false spike, the pair focused at the 100% retracement around 1.5825 which was hit yesterday. That is why, rebound is seen today, which will probably extend towards 1.5910.