FX.co ★ GBP/USD Intraday technical analysis August 17 , 2011

The pair is now testing the resistance level 1.6470 which contains previous tops & the backside of the broken uptrend acting as a moving resistance for the pair.

Also it's important to note the strong bullish reaction of the current bullish move originating at the support level 1.6120.

On 4H chart, the pair has broken the bearish channel with successfuly retest of the backside of its upper limit.

Also the bears showed a good bullish reaction on this retest manifested in the long lower tail of the retest candlestick & the following bullish engulfing candlestick.

Now the price is trapped between a strong resistance 1.6470-1.6500 and backside of the broken bearish channel acting as moving support.

We need to see break 1.6470 in order to continue the bullish move. However failure to do so will initiate downside move targeting 1.6375 then further lower targets.