FX.co ★ GBP/USD intraday technical analysis and trading recommendations for May 17, 2013

The weak bullish structure with integrated swings led to price fall. It happened last week during both Thursday and Friday after the upper limit of the movement channel 1.5590-1.5600 had 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.

Shortly after, the GBP/USD pair established a consolidation range 1.5190-1.5267 around 1.5245 (61.8% Fibonacci). Bullish rejection pushed the pair again to test 1.5320 (Fibo 50%) where considerable bearish pressure was applied to the pair to re-close again below 1.5250 (61.8% Fibo).

Yesterday, Price Zone 1.5320-1.5340 provided a SELL entry which is running in profits now, It is adviced that SL should be lowered to 1.5290 to avoid possible reversals.

Failure of the GBP/USD pair to have 4H closure again above 1.5250, favours the bearish view towards 1.5150, then 1.5070.