FX.co ★ GBP/USD intraday technical levels and trading recommendations for February 28, 2014

Considerable support was provided around 1.6250. This price level corresponds to the previous multiple tops as well as the recent bottom.

A breakthrough above the price zone of 1.6590-1.6660 opened the way directly towards the upper limit of the depicted channel around 1.6820 where the bears established a prominent top.

As expected, a bearish impulse towards 1.6590-1.6660 took place. An ascending bottom was established there on February 25.

The pair is still trapped between 1.6730 (61.8% Fibonacci on the 4H chart) and 1.6590 (lower limit of this congestion zone).

Breakout in either direction will allow enough momentum to be gathered in the same direction of breakout.

Breakdown of 1.6590 clears the way towards a more prominent support around 1.6530 ( Fibonacci 50% on the daily chart) and probably 1.6470 (Fibonacci 61.8% of the same swing).

Price action should be watched at retesting of price zone of 1.6550-1.6470 as a valid BUY entry may be offered with Stop Loss as 4H closure below 1.6500.