FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for July 17, 2012

On the midterm scale, the GBP/USD currency pair is moving sideways in a slightly bearish channel since it managed to break through the midterm uptrend line on July 5.
Price levels of 1.5460 and 1.5520 which correspond to 61.8% and 50% of Fibonacci levels are based on the previous bullish swing 1.5266 up to 1.5774.

On the intraday scale the price zone of 1.5400 corresponds to the lower limit of the long-term channel which constituted a very strong support zone which was able to push the GBP/USD pair to the upside to 1.5650 corresponding to the upper limit of the bearish channel and the backside of the broken uptrend line mentioned above.

The pair is probably forming a midterm bearish Head & Shoulders reversal pattern with its right shoulder located around R1 (1.5650) which is rendered a valid sell entry with SL located above 1.5728.

TP Levels for the SELL Entry should be located around 1.5640, 1.5720 and 1.5770.

The Following Price Levels: 1.5400,1.5460 and 1.5520 are considered as Intraday Support levels while 1.5640, 1.5720 and 1.5770 are considered Intraday Resistance Levels for the GBP/USD pair.

If you like my articles, please vote for me in Analyst of the Year Contest by clicking here.