FX.co ★ GBP/USD intraday technical levels and trading recommendations for January 16, 2014

The daily chart shows multiple bearish rejections at the upper limit of the ongoing channel resulting in an atypical bearish head and shoulders pattern.

Despite Tuesday's bullish reversal towards 1.6460 intraday resistance, a bearish engulfing daily candlestick was expressed Yesterday indicating the strength of this price level as resistance.

Sellers should be watching for today's daily closure. Yesterday's daily candlestick failed to close below 1.6333 showing some temporary bullish rejection that's taking place until now.

Daily closure below 1.6333-1.6300 is a must to collect further bearish momentum to push towards 1.6230-1.6200.

On the other hand, daily fixation above 1.6330 will probably allow another bullish impulse towards 1.6480 and probably 1.6600 to occur thus invalidating the current SELL position.