GBP/USD Intraday Technical Analysis and Linear Regression Channels for May 8, 2012
Having reached the price level 1.6300, the GBP/USD pair has been trading in downside movement within the narrow-ranged bearish violet channel untill yesterday when we had bullish breakout.
Yesterday we mentioned that in order to remain bearish in the nearest future the GBP/USD pair should not hold above 1.6160 which had been broken yesterday.
A breakdown of the resistance level 1.6160 opened the way to the point 1.6195.
Price action towards price level 1.6160 (backside of the broken bearish channel) should be considered as the bullish rejection will lead to a bullish swing towards 1.3240.
The Violet channel is obviously bullish due to the yesterday's bullish movement after breakdown of Resistance Level 1.6160, while the Blue & Yellow channels are still bearish.
Breakdown of the lower limit of the Violet channel at 1.6170 will probably open the way to the price zone 1.6145-1.6155 which correspond to the intermediate line of the Yellow & Blue channels.
Price Zone 1.6145-1.6155 is expected to act as an important Intraday Support. However, its breakdown will open the way to the lower limit of the Yellow & Blue channels at 1.6110 which should be considered for bullish price action as a long signal.
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