FX.co ★ GBP/USD intraday technical analysis and trading recommendations for February 7, 2013

The GBP/USD trades in short-term consolidation, holding above yesterday’s low around 1.5630, trapped within 45 pips range. Moreover, 4H chart remain negative, as current price action remains capped as long as the pair is trading below previous bottom at 1.5680 zone.
On Monday, the last bullish impulse was capped at 1.5800, so that GBP/USD could continue trending lower breaking down 1.5670 and testing the next target at 1.5630 ahead of the psychological support at 1.5600.
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 in the first place.
Last week price level 1.5830 was recommended as a valid SELL entry with SL above 1.5895 which got activated shortly after. This week we need to have fixation below of the weekly low 1.5673. Otherwise, consolidation again above 1.5750 might hinder the bearish scenario.
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.