FX.co ★ GBP/USD Intraday Technical Analysis & Trade Recommendation January 9, 2012

GBP/USD is having a strong downtrend after hiting the resistance level at 1.5640 which gave a good short opportunity which we suggested last week.

After recording a low at 1.5376 the pair is showing some strength retracing to the upside testing the upper limit of the marked bearish channel at 1.5447.

Price action shows bearish domination at this level, However, we need to know that the pair is trapped between 1.5447-1.5415 on the short-term.

We need to see breakout of this range, so we can take a trade on the same direction with TP about 50-75 pips.

SL should be re-consolidation again inside the price range.