FX.co ★ GBP/USD intraday technical levels and trading recommendations for January 21, 2014

The daily chart showed bearish rejection at the upper limit of the ongoing channel around 1.6590 (on January 2) with a quite strong bearish engulfing candlestick.

This was followed by bearish breakdown of the first support trendline located at 1.6490 where a descending high was established last week.Since then, the pair has been consolidating within price range1.6320-1.6500.

On Friday, the bears failed to close below 1.6320 (2nd support trendline). Instead, considerable bullish rejection was expressed.

The technical outlook suggests taking a SELL entry at 1.6460. Daily closure above 1.6460 invalidates this SELL entry.

On the long-term, daily breakdown below 1.6333-1.6300 is a must to collect further bearish momentum to push towards 1.6230-1.6200 initially.