FX.co ★ GBP/USD intraday technical levels and trading recommendations for October 13, 2014

Overview:

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

Many bearish impulses were previously initiated around 1.7180 and 1.6630 where the downtrend line came to meet the pair then.

The price level of 1.6140 constituted a weekly support level that paused the bearish movement on September 9 when the bears quickly visited price level of 1.6060.

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

Last week, the bulls were pushing towards the downtrend line as well as previous prominent bottom on the weekly chart (price zone of 1.6225-1.6250).

Trading recommendations:

Based on the previous data, SELL positions are preferred as long as the bears keep defending the price zone of 1.6250-1.6320 ( 23.6% Fibonacci level and previous broken bottom ).

A slide below price zone of 1.6045-1.6020 also signals another SELL opportunity with higher risk.

The stop loss should be placed above 1.6260. Price levels of 1.6080 and 1.5890 are initial targets.