FX.co ★ GBP/USD Intraday Technical Analysis and Trading Recommendations for October 9, 2012

Despite the indecisive movements last weeks, the GBP/USD pair reacted strongly towards 1.6300 – 1.6350 zone confirming the bearish retracement scenario expected in the previous articles.
The bearish Head and Shoulders reversal pattern on the 4H chart which was confirmed on Friday enabled 1.6060 level as a full target for the pattern which got hit yesterday with further decline.
Once more, GBP/USD expressed daily closure below the lower limit of the depicted bullish channel which may extend the current bearish movement at least towards 1.5970.
Support: 1.6020, 1.5959, and 1.5920.
Resistance: 1.6125, 1.6160, 1.6260, and 1.6315.
Intraday support around 1.6100 was broken down yesterday and 1.6020 corresponding to the lower limit of the 4H channel is being tested by today's daily candlestick.
A long-term support is seen around the price level of l and 1.5920 (50% Fibonacci Level). However, the recommended trade is to SELL the pair at retesting of the lower limit of the broken channel around 1.6160 with SL located above 1.6215.