GBP/USD Intraday Technical Analysis and Linear Regression Channels for July 5, 2012
The Linear Regression Channels for GBP/USD are wide-ranged due to the strong bearish tendency of the pair during this week.
Although, at earlier time today GBP/USD could break through the upper limit of the Violet channel, the pair failed to break through the Intraday Resistance which corresponds to the mid-line of the Yellow channel located around price level 1.5620.
The GBP/USD pair then expressed massive bearish reaction towards this resistance level breaking down the lower limit of the Yellow channel with strong bearish engulfing 1H candlestick.
Now Price Level 1.5570 which corresponds to the backside of the broken lower limit of the Yellow channel and previous broken support level is considered to act as a strong Intraday Resistance on retesting which provides a valid SELL entry with SL located above 1.5625.
TP levels for short entries should be located at 1.5500, then 1.5440.
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