FX.co ★ GBP/USD Technical analysis & Expected scenario July 6, 2011

::Daily::

The pair has recently broken the uptrend line.

The Pair is demonstrating a downtrend inside a bearish channel.

The lower limit of this channel held the price above pushing it to retrace.

It's expected that the pair retraces towards the area marked in the chart then resumes its downside movement.

::4H::

On the 4H chart, the pair is a congesting area after breaking the short-term bearish channel marked in the chart.

Also there's an ultra-short term bullish channel seems to push the price to the upside.

The Expected Scenario :

The pair continues on retracement from current prices towards 1.6220 - 1.6300 to retest the broken uptrend and 38.2% 50% Fibonatcci Levels marked in the chart.

Area 1.6220 - 1.6300 would be a significant area that makes the pair resumes its downside movement.

Direct break of 1.5910 cancels the previous scenario and opens the way for the pair to go down directly without the retracement scenario.