FX.co ★ GBP/USD intraday technical levels and trading recommendations for October 8, 2014

Overview:

On July 15, extensive bearish impulse was initiated. Since then, the GBP/USD pair has been downtrending below the depicted downtrend line.

Two bearish impulses were previously initiated around 1.7180 and 1.6630 corresponding to the downtrend line.

The price level of 1.6140 constituted a prominent weekly support level.

Retracement towards the price zone of 1.6350-1.6400 took place as expected where a new bearish impulse was applied as expected in previous articles.

This price zone corresponded to the upper limit of the depicted channels as well as Fibonacci level of the recent bearish impulse between 1.7180 and 1.6060.

Bearish targets around 1.6050 ( previous weekly low ) and 1.6000 ( psychological support level ) were successfully reached last week.

Trading recommendations:

Based on the previous data, the market offered a valid SELL opportunity around 1.6460 during last week's consolidations.

Bearish targets were located around 1.6160, 1.6080 then 1.5890 ( ALL target levels already got visited ).

The remaining SELL position remains valid as long as the bears keep defending price zone of 1.6250-1.6320 ( 23.6% Fibonacci level and previous broken bottom ). Hence, Stop Loss should be lowered to 1.6150 and let the remaining portion of the position run with the market.