FX.co ★ GBP/USD intraday technical analysis and trading recommendations for May 2, 2013

Stabilization above 1.5370 cancelled the bearish reversal scenario, leading towards 1.5430 (the projection target of the range breakout) then 1.5590.

The long-term view remains bullish as long as the pair continues to consolidate within the depicted daily bullish channel above 1.5370-1.5400. However, the upper limit of the movement channel 1.5590-1.5600 may provide a considerable resistance for the pair. This idea is supported by the weak ongoing bullish structure with integrated swings.

On the 4H chart, there's a short-term movement channel the lower limit of which needs to be broken-down in order to initiate a retracement movement towards 1.5370.

There is no confirmed signal of reversal until now. However, price action should be watched carefully as reversal is expected. Breakdown of 1.5520 is essential for further bearish retracement.