FX.co ★ GBP/USD intraday technical levels and trading recommendations for February 7, 2014.

The GBP/USD pair failed to fixate above 1.6600 on January 24. Instead, a strong bearish impulse initiated quickly pushing the pair towards 1.6250 .

Around 1.6250, previous multiple tops as well as a recent bottom were established. That's why a considerable support is expected to be found there.

Near 1.6250 extending down to 1.6200, the lower limit of the ongoing bullish channel comes to meet the pair. Bullish pressure is being expressed during this week on retesting.

Sideway consolidation is taking place during the last three days maybe giving sometime for the bulls to gather enough momentum at retesting of the uptrend line.

A bullish Head and Shoulders is being expressed probably to push towards 1.6450-1.6500 "prominent resistance zone". This bullish view remains valid as long as 1.6200 remains defended by the bulls.

On the other hand, breakdown of 1.6200-1.6250 on a daily basis turns the ongoing bullish bias into a bearish one targeting at 1.6140 initially rendering the current bullish formation an "expanding wedge" reversal pattern. This will be highlighted if the bears manage to breakdown below 1.6200.