FX.co ★ GBP/USD Intraday technical analysis July 21, 2011

The GBP/USD currency pair is testing the upper limit of the bearish channel at 1.6200 which is also 50% Fibonatcci Leve.

This is also the upper limit of a short term bullish channel.

We don't forget that the pair has broken the uptrend line previously.

The pair is showing weakness in the bullish move to the upside.

Obvious reversal candlesticks started to appear.

This indicates a short positions around 1.6175 - 1.6200 with TP at 1.6130, 1.6105 then 1.6070.

SL should be placed above 1.6254.