FX.co ★ GBP/USD Intraday Technical Analysis & Trade Recommendation December 28, 2011

Lately the GBP/USD formed a Head & Shoulders reversal pattern after hiting the resistance level at 1.5770.

Since then the pair has been moving sideways inside the marked channels on the chart.

The Yellow channel is slightly bearish while the violet & blue ones are bullish.

Today at earlier time the pair broke the violet channel to the downside indicating bearish domination.

Now the pair is testing the backside of the broken channel & the upper limit of the yellow bearish channel indicating a bearish opportunity at 1.5690.

SL should be placed above 1.5720 & TP at 1.5645, 1.5600 then 1.5560.