FX.co ★ GBP/USD Weekly Review June 6, 2011

Monthly candle has a long downside tail indicating the bullish sentiment of the market on the long term .

We have higher highs and higher lows which is indication of the solidity of the current uptrend .

The weekly candle closed with a long downside tail indicating the bullish sentiment of the long term .

It's important to note that we didn't lose the previous weekly closure above 1.6420 which is the upper limit of the highlighted consolidation range .

This weekly closure confirms the importance of this level 1.6420 .

Also still we have ascending highs and lows indicating continuity of the uptrend .

The important thing to note on the Daily chart is that we had a descnending HIGH formed last week at 1.6545 .

We need Daily closure above it in order to resume the upside direction safely .

We have newly formed uptrend which we will take into consideration when the price retests it later .

We had breakout of the bearish channel 2 candles ago .

Level 1.6300 provided a strong support area for the pair which is manifested in the engulfing bullish candlesticks at the level .

We had breakout of the bearish channel after finding strong support at the previously mentioned level 1.6300