FX.co ★ GBP/USD Intraday Technical Analysis August 25, 2011

Bearish engulfing daily candlestick of the current resistance area suggests SHORT position towards the lower limit of the bullish channel.

The next support levels are located around 1.6262 then 1.6140.

Head & Shoulder reversal pattern which we mentioned yesterday was confirmed with break of its neckline.

SELLING at retest of the neckline around 1.6434 is recommended.

Now the pair is targeting 1.6300 then 1.6250 & SL should be daily closure above1.6445 again.