FX.co ★ GBP/USD intraday technical analysis and trading recommendations for May 23, 2013

The weak bullish structure with integrated swings led to the 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.

On Monday, failure of the pair to have 4H closure again above 1.5250, cleared the way towards 1.5033 (Fibonacci 100%) which showed some bullish presence yesterday.

As long as the market bias remains bearish, the GBP/USD pair should not reach above 1.5200 which will probably provide a valid SELL entry on retesting (downtrend line and 61.8% Fibonacci) with SL located just above 1.5250.