FX.co ★ GBP/USD Intraday Technical Analysis & Classic Analysis Bullish View 9, 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 on Wednesday.

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.

We suggested a long position at 1.5640-1.5620 which is going in profit now.

It's important to note that 1.5730 may act as intraday resistance for further upside movement today so some profits should have been taken to avoid next retracement.

If the pair shows bearish reaction towards 1.5730-1.5745, this could be a short entry for intraday targets 30-50 pips.