FX.co ★ GBP/USD Intraday technical analysis July 20, 2011

The pair is at a strong resistance level which is

50% Fibonacci level of the bearish move from 1.6545 down to 1.5780.

The upper limit of the slightly bullish channel marked on the chart.

Consolidation between the lower limit of the new bullish channel and the resistance area (50% Fibonatcci).

Also we see bullish rejection of 38.2% Fibonatcci level.

Now the pair needs to close below 1.6100 in order to reach 1.6030 - 1.6000.

Trade Recommendations:

Selling near 1.6170-1.6200 with TP at 1.6130,1.6100 then 1.6030.

SL should be 4H closure above 1.6250.