FX.co ★ GBP/USD intraday technical levels and trading recommendations for September 24, 2013

Daily view:

The cable invalidated the reversal Head and Shoulders pattern maintaining quite strong bullish momentum to the upside.

Daily closure above 1.5719 (the highest level in August) enhanced further bullish pressure to be applied, so that the bulls could step above 1.5760 (the highest level in June).

Previous bullish swing targeted 100% Fibonacci Expansion level. This rendered the current one targeting the same level which was bypassed when the pair stepped above 1.6035 recording a daily high at 1.6170.

The pair expressed a bearish Harami daily candlestick off 1.6150, which was followed by daily closure below 1.6035 which took place on Friday.

This is an indicator of a possible bearish retracement towards 1.5870 then 1.5780 where the established uptrend line comes to meet the pair.

4H view:

Obvious bullish pressure has been applied during the past two weeks rendering 1.5450 a valuable ascending bottom which was established during August.

The ascending channel depicted on the chart gave bullish potential for the pair towards 1.6000 and 1.6170 where the upper limit of the channel is located.

Re-сlosure below 1.6040 enables the bears to initiate an early retracement move towards 1.5770 where the lower limit of the channel is located provided that the pair does not break through 1.6075. However, failure to do so will activate another bullish move towards 1.6190.

Fundamentally, a member of the Monetary Policy Committee Bank of England David Miles said on Tuesday that the British economy has shown signs of switching into a better path, which is why it is to keep interest rates and asset purchases at current levels is the right policy for the current time. This may enhance a bearish corrective move as mentioned above.