FX.co ★ GBPUSD intraday technical levels and trading recommendations for August 26, 2013

Strong bullish sentiment was expected to be found at the support zone around 1.4830 which pushed the pair to the upside reaching 50% Fibonacci level around 1.5275, 1.5400 corresponding to 61.8% Fibonacci level then 78% Fibonacci around 1.5533.

Some bearish rebound took place off 1.5400 towards 1.5100 where an ascending bottom was established on August 1. Now there are prominent established ascending bottoms around 1.5100, 1.5200, and 1.5420. Moreover, there is a bullish breakout above 1.5575, which cleared the way towards 1.5680-1.5700 corresponding to a previous high established on 6th of June.

A valid BUY entry was suggested at retesting of 78% Fibonacci around 1.5530 with SL located below 1.5490. However, traders should be cautious about the obvious bearish weekly candlestick.

We need to see obvious closure of 4H above 1.5575 to remain bullish towards 1.5630 then 1.5750 in the short-term prospect. 4H breakdown of 1.5540 probably brings back bearish pressure towards 1.5430 initially.

It's important to note that the market expressed a SHOOTING STAR weekly candlestick, which roughly tested 1.5585. This will probably provide further bearish momentum for the pair unless the recent low around 1.5540 remains solid.