FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for July 24, 2012

Since July 12, GBP/USD pair demonstrated an uptrend movement within the depicted channel until last week when the pair managed to break down the lower limit of the channel around 1.5690 and the significant support level around 1.5660 reaching the next support level around 1.5580 which was expected to hold the pair above for some period. However, the bearish movement extended down to 1.5485.
Now we have many expected technical patterns being formed on the chart, a Head & Shoulders reversal pattern and Price Triangle being broken to the downside and the backside of the broken channel which will constitute a sold resistance for GBP/USD pair.
The current prices are expected to push higher towards our expected SELL zone around 1.5660 - 1.5690.
Price zone 1.5660 - 1.5690 is suggested as a SELL zone with TP levels located at 1.5600, 1.5555 then the final target level at 1.5440.
A break through above 1.5700 invalidates the bearish scenario mentioned above.