GBP/USD Intraday Technical Analysis and Trading Recommendations for August 15, 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 followed by days of indecision as depicted on the chart.
Yesterday, GBP/USD tested the upper limit of the depicted triangle around the price level of 1.5730 showing a significant bearish price action manifested in the inverted hammer daily candlestick which enhances the bearish view of the pair in the mid-term.
During the 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 action pushing the GBP/USD pair higher towards 1.5730 which is a significant intraday Resistance level mentioned yesterday.
The market still offers a SELL entry around the price level of 1.5730 with tight Stop Loss located above 1.5750.
Breakdown of support level 1.5666 opens the way for the GBP/USD pair to resume its bearish movement towards 1.5630 and 1.5580.
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