FX.co ★ GBP/USD - narrow 150 pips range - consolidation, bullish breakout is taking place for July 17, 2013

Strong bullish presence was expected to be found off support zone around 1.5830 which pushed the pair to the upside breaking through the upper limit of the 4H channel that again reached up to 61.8% Fibonacci level around 1.5180.

Last week, on Friday, bearish price action was expressed around 61.8% Fibonacci level depicted in the daily chart around 1.5180 which was followed by the marked price fall that hardly reached 1.5020 (78% Fibonacci).

Now there is an established temporary bottoms around 1.4825 and 1.5050, we need to see how the pair would react towards the previous broken bottom around 1.5130-1.5180 on a daily basis after the pair expressed bullish breakout above 1.5180 on the 4H chart.

Price zone 1.5025-1.5050 (78% Fibonacci and upper limit of the descending channel) was not tested this week. However, the pair is now trying to fixate above its consolidation range 1.5050-1.5180 which is bullish signal towards 1.5280 (50% Fibonacci).

Failure to fixate above 1.5180 will probably bring bearish pressure again into the market for retesting of 1.5050 at least.