FX.co ★ GBP/USD Intraday technical analysis June 14, 2011

On the Daily chart , we see strong bullish reaction of the price indicating strength of the current uptrend .

Yesterday's Daily candlestick was bullish engulfing enhancing the the bullish view .

As we expected the lower limit of the bearish channel acted as a support pushing the price up to the upper limit of the same channel .

Now the price is testing level 1.6425 (the upper limit of the channel and level 61.8% Fibonatcci) which is a strong resistance on the short term .

4H candlestick closure above this level gives the signal to go LONG with target at 1.6538 then 1.6616 with SL below 1.6325

If price gave bearish reaction towards this level , we can go short as an intraday trading with small target down to 1.6348 with SL 4H closure above 1.6450