FX.co ★ GBP/USD reacts bearishly on testing 1.5400 heading for 1.5260 for July 30, 2013

Strong bullish presence was expected to be found off support zone around 1.5830 which pushed the pair to the upside breaking through the upper limit of the 4H channel that again reached up to 50% Fibonacci level around 1.5275.

Now there are three established bottoms around 1.4825, 1.5050 and 1.5270 (which is being established). Moreover, the GBP/USD pair expressed daily closure above 1.5270 (61.8% Fibonacci). However, strong bearish pressure was applied off 1.5400 as expected Yesterday.

The GBP/USD pair is now trapped between two Fibonacci Levels located around 1.5265 and 1.5380 where a consolidation range may be established.

Bearish rejection expressed off 1.5400 favours the bearish direction in the short-term. However, 4H closure below 1.5265 is important to confirm a double-buttom pattern with projection target at 1.5100.

Reconsolidation below 1.5280 will probably bring bearish pressure again into the market. However, if the bulls are solid there the pair may pursue the ongoing uptrend strongly thus we need carefull watching of price action around 1.5275.