FX.co ★ GBP/USD intraday technical analysis and trading recommendations for May 15, 2013

The weak bullish structure with integrated swings led to price fall that took place on last week during both Thursday and Friday after the upper limit of the movement channel 1.5590-1.5600 provided a considerable resistance for the pair.

The GBP/USD pair broke down Important support level 50% Fibonacci which came to meet the pair at 1.5315 with the lower limit of the depicted bullish channel which opened the way for the pair towards Fibo 61.8% located at 1.5245.

Today the GBP/USD pair is trading below 1.5245 (61.8% Fibonacci). However, signs of bullish rejection is manifest on the 4H chart which may initiate a retracement movement above this level.

Price Zone 1.5320-1.5340 should be watched for a retest providing a SELL entry with SL as 4H closure above 1.5380.