FX.co ★ GBP/USD Intraday technical analysis August 2 , 2011

Failure of the pair to stabilize above 1.6440 with strong bearish reaction manifested in the bearish engulfing daily candlestick.

The pair is now trapped between the broken uptrend line working now as resistance and the upper limit of the broken bearish channel working as support.

Also the pair is now testing the support level 1.6265 which provided strong demand many times before.

The pair has broken the bullish channel marked on the 4H chart making lower high.

Now support level 1.6265 is being tested, with its break the pair will decline rapidly towards the support level 1.6170 - 1.6150.

This support level is 61.8% Fibonatcci level & previous swing highs.