FX.co ★ GBP/USD Intraday technical analysis July 5 , 2011

On the Daily chart , the pair has broken the uptrend line.

Then the pair managed to break the support level 1.6070.

However , the last few daily candlesticks have lower tails indicating rejection of the pair to go lower at the moment.

As we see the pair has retested the broken bearish channel successfully with an engulfing bullish candlestick.

Also closure above 1.6070 indicated the continuity of the upside movement.

Conclusion:

4H closure above 1.6070 gives the LONG signal up to 1.6190 with SL closure below the mentioned level again.