FX.co ★ GBP/USD Intraday Technical Analysis August 11, 2011

The GBP/USD has finally broken the congesting zone 1.6220 - 1.6470 to the downside.

It's also important to notice that we have a broken bearish channel upper limit which will act as a support for the pair on its downside movement.

Now the pair is testing the support level 1.6135.

The mentioned testing of the support level 1.6135 is more obvious here.

The lower limit of the congesting zone broken yesterday is at 1.6220 which may be a good SELL entry.

There is a bearish channel which prevented further decline of the pair after testing its lower limit at the asian session.

Selling at testing the upper limit & the resistance area 1.6220 is the best entry at the mean time with TP at 1.6150 then 1.6020.

SL for short positions should be above 1.6340.