FX.co ★ GBP/USD Intraday technical analysis July 22, 2011

Yesterday was a Strong Bullish day.

The daily candlestick broke the bearish channel also the resistance level 1.6250.

The breakout of the bearish channel with this obvious bullish direction indicates the bullish presence in this area of chart.

It's expected for the pair to visit 1.6500 in the coming few days.

Now the pair is testing a respectable resistance level which is previous tops on the daily chart so it's expected that the price retraces a little before resuming the up direction.

The current levels are expected to limit the bullish move and bring retracement down to 1.6230 - 1.6250 to gather the momentum to go upside again.

Recommeded trades:

Buy the pair near 1.6250-1.6230 with 1st TP at 1.6330 - 1.6370 then 2nd TP at 1.6330 - 1.6370.

SL should be closure of the bullish channel marked in the chart.