FX.co ★ GBP/USD Intraday Technical Analysis August 10, 2011

The pair is still trapped between the backside of the broken uptrend & The strong support level ( -1.6072 ) which is confluence of previous highs and retest of the backside of the short term broken channel.

The pair hit the support level at 1.6175 yesterday after bad announcements from UK then bounced to the upside with the Federal statement, forming a daily candlestick explaining the prevailing confusion of the market.

The pair has broken the bullish channel on 4H timeframe.

The currency pair is still trapped inside the consolidation range 1.6200 -1.6500.

The market is waiting for the BOE Inflation Report coming today.

We must notice that the 1.6174 & 1.6130 are strong support levels & lower limit of the consolidation channel.

Overlapping of swings in this area of resistance also indicates weakness of the bullish wave extending from 1.5779.