FX.co ★ GBP/USD Intraday technical analysis July 12, 2011

::Daily ::

Finally The GBP/USD came out of the consolidation range 1.5900 - 1.6300.

Stability below 1.6300 gave the pair the opportunity for further decline to break 1.5900.

On the Daily chart, starting from the previous top (1.6750), The pair has been respecting the bearish channel through which it broke the uptrend line.

Now we have a bearish flag pattern.

4H Closure below 1.5900 confirms the pattern giving Short signal with TP at 1.5800 , 1.5750.

SL should be placed above 1.6150.