FX.co ★ GBP/USD intraday technical analysis and trading recommendations for May 20, 2013

The weak bullish structure with integrated swings led to price fall 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 which was broken too.

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

As long as the market bias remains bearish, the GBP/USD should not reach above 1.5250. Otherwise, further movement towards 1.5320 will be expected then.

A possible pullback towards 1.5250 is not excluded. However, failure of the pair to have 4H closure again above 1.5250, favours the bearish view towards 1.5150, then 1.5070.