01.12.201116:23 Forex Analysis & Reviews: GBP/USD Intraday Technical Analysis ( Channel Breakout Opportunity ) December 1, 2011

Long-term review

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In the period between 11-25 November, GBP/USD was treding down making lower lows & lower highs inside the marked channel.

Finally the pair found support at 1.5420 which stopped further decline of the pair price.

Yesterday we had a strong bullish breakout of this steep bearish channel with a full body bullish candlestick which stopped at 38.2% Fibonacci level at 1.5700.

It's important to note that the pair has a strong resistance area between 1.5870-1.5910 where the lower limit of previous congestion zone, previous lows & Fibonacci level 61.8% are located.

On the 4H chart, We can obviously see the bullish breakout of the mentioned bearish channel with very strong successful retest.

This week the pair established an intraday support level at 1.5620 which may be retested giving a good LONG entry.

Also the previously mentioned resistance at 1.5870-1.5910 is marked on the chart.

Based on the previous analysis

We suggest having a LONG position at the retest of support level 1.5620 [TP at 1.5670, 1.5750, 1.5790 then 1.5860 & SL placed below 1.5520].

If the pair resumes its upside movement, then we can have a short position at 1.5870-1.5910 [TP at 1.5800 & 1.5710 & SL placed above 1.5940].

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