FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for July 25, 2012

Since July 12, the GBP/USD pair demonstrated an uptrend movement within the depicted blue channel until the 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 keep the pair above for some period. However, the bearish movement extended down to 1.5485.
During this week, we had many expected technical patterns, for example, Head & Shoulders reversal pattern and Price Triangle are broken to the downside and the backside of the broken blue channel. However, none of them was retested till the moment and probably none of them will be.
Today, the GBP/USD pair is trapped within the price range between 1.5520 corresponding to 50% Fibonacci level and 1.5475 corresponding to 61.8% Fibonacci level.
Bullish breakout above 1.5520 will probably open the way towards 1.5620 while bearish breakout below 1.5475 will probably enable 1.5395.
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.