FX.co ★ GBP/USD intraday technical analysis and trading recommendations for February 1, 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.
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 pair remained under heavy SELLING pressure before recovery attempt from 1.5675 zone succeeded to push the pair above 1.5750 level.
Brief consolidation around 1.5700 was expected as indicators were entering oversold state. However, the pair dipped down reaching 1.5675 expressing significant bullish price action manifested in the bullish engulfing daily candlestick that closed again above key-level 1.5750. Therefore, price level 1.5830 was expected to be the next station which got visited yesterday.
Consolidation above 1.5895 invalidates the bearish scenario in the short-term. Moreover, the pair needs to consolidate again below 1.5830 to resume further bearish movements.
Theoretically speaking, the pair has confirmed a giant "double-top" pattern to be targeting 1.5350 as long as the pair is consolidating below neck-line around 1.5830 - 1.5890.