FX.co ★ GBP/USD intraday technical levels and trading recommendations for November 11, 2013

Strong bullish sentiment was found at the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400, then 1.5700, where two prominent tops were established.

Bullish pressure was applied off 1.5430-1.5400 which managed to break through 1.5720, thus matching the August highest level and the recently established top.

The market expressed obvious closure above 1.5575 which opened the way towards 1.6000, 1.6170, then 1.6260.
It is important to note that the market expressed bearish rejection off 1.6150-1.6200 which resulted in an inverted hammer weekly candlestick. That is why a bearish movement was expected to take place during the last week provided that the bears continue defending the weekly high at 1.6150. However, the lack of bearish momentum enhanced by the weakness of USD allowed the bulls to step above 1.6200 (127.2% Fibo Expansion) for a short time until bearish domination came back into the market.

On October 25, there was confirmation of the bearish momentum located around 1.6200 resulting in a shooting star daily candlestick pushing more bearish steam into the market.

The pair established a double-top reversal pattern around 1.6180-1.6200 which provided a valid sell entry on retesting or after the breakdown of 1.6100 (neck-line) with SL located above 1.6250.

The pair needed to breakdown the support level located around 1.6040 (100% Fibo Expansion) which took place last Friday, while now the pair needs to remain fixating below it in order to resume the ongoing movement heading for lower targets around 1.5900 then 1.5820.

On the other hand, daily fixation above 1.6040 will enable the pair to express bullish movement towards 1.6100-1.6150 initially.