FX.co ★ GBP/USD Intraday Technical Analysis & Classic Analysis Bullish View for December 8, 2011

As we see the pair has recently broken the long-term bearish channel with successful retesting.

Now the pair formed another short-term bearish channel representing a flag continuation pattern which was broken yesterday suggesting continuation of the current bullish direction.

Marked above on the 1H chart, a good support area 1.5640-1.5620.

It's a confluence of the following factors: broken previous top now acting as support, the retest of the backside of the broken channel & Fibonacci 61.8% of the swing between 1.5560-1.5720.

Based on the previous analysis

You can take a good long entry at 1.5640-1.5620 with SL 1H closure below 1.5590.

TP should be placed at 1.5670, 1.5695, 1.5745 then 1.5775.