FX.co ★ GBP/USD Two possible scenarios and trade opportunity June 9, 2011

Hello Instaforex Traders ,

GBP/USD is now trading in a narrow zone ( kind of a triangle pattern ) on the 4H chart.

Now we are in front of one of two scenarios :-

1. The price breaks the upper limit of the newly formed bearish channel targeting the last high and upper limit of the bullish channel ( Blue )

2. The price breaks the lower limit of the bullish channel targeting the nearby lows and the lower limit of the bearish channel.

Trade recommendations :

4H candlestick closure above the red line gives the LONG signal with target up to 1.6540 then 1.6600

4H candlestick closure below the Blue line gives the SHORT signal with target down to 1.6320 then 1.6260