FX.co ★ GBP/USD intraday technical analysis and trading recommendations for March 13, 2013

The price around 1.5300 marks the upper limit of the consolidation pattern above 1.5075. Hence, formation of a lower high around 1.5220, followed by breakdown below 1.5075, is enhancing the bearish sentiment of the market.

The bearish breakout, which took place last week, achieved its target at 1.4880 where significant bullish rejection was demonstrated in the bullish daily hammer candlesticks.

Also the daily closures, which were observed last week, imply continuation of the sell-off afterwards provided that the pair remains below 1.5075 (the lower limit of the range). That is why, retesting of 1.5075 probably provides a valid SELL entry with SL located just above 1.5150.

The first strong support will then be encountered at 1.4855 if the current bearish movement remains intact this week.