FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for August 13, 2012

On May 15, the GBP/USD pair managed to break down the lower limit of the bullish BLUE channel depicted on the chart. Since then, the pair has been moving within the triangle pattern after having a quick bearish swing between 1.6300 and 1.5260.
Price level of 1.5767 which corresponds to the upper limit of the symmetrical triangle, constituted an intraday resistance for the pair as expected.
Recently, the GBP/USD pair has found a significant support at the lower limit of the triangle pattern around 1.5490 showing obvious bullish price action which is manifested in the bullish engulfing daily candlestick which was followed by days of indecision as depicted on the chart.

During last week, GBP/USD was moving within the bullish 4H channel depicted on the chart after finding support around price level of 1.5490.
On Friday, price level of 1.5577 expressed a significant bullish price action pushing the GBP/USD pair price higher towards 1.5700 until now.
The upper limit of the depicted channel is located around 1.5730 corresponding to previous tops and constituting a significant intraday Resistance level.
The market offers a SELL entry around price zone 1.5700-1.5730 with tight Stop Loss located above 1.5750.