FX.co ★ GBP/USD intraday technical levels and trading recommendations for September 4, 2013

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

Last week, the uptrend line around 1.5430-1.5400 applied bullish pressure on the pair which was able to reach 1.5630 today.

The market expressed obvious closure of 4H above 1.5575 which invalidates the H&S reversal pattern. This renders the pair bullish towards 1.5630 then 1.5750 in the short-term prospect.

It is important to note that the market expressed an obvious bearish weekly candlestick similar to the precceeding one. However, the intraday price action indicates bullish movement to take place.

4H chart shows a broken bearish channel, the upper limit of which is located around 78.6% Fibonacci Level. The pair remains bullish towards 1.5690 initially in the short prospect as long as 1.5577 remains defended by the bulls.