FX.co ★ Intraday technical levels and trading recommendations on GBP/USD for July 22, 2014

Successive ascending bottoms around 1.6465, 1.6555, and 1.6665 (corresponding to the uptrend line) constituted a solid bullish structure that kept pushing higher.

However, during the previous visit in May, the bullish momentum wasn't strong enough to allow the bullish breakout above 1.7000 to pursue towards further targets. Instead, this breakout lost its bullish momentum showing successive lower highs that temporarily managed to breakdown the depicted uptrend line.

This had been taking place until the GBP/USD pair showed bullish recovery around 1.6690 which was followed by strong bullish pressure that pushed above 1.7000 and 1.7150 thus challenging the new price levels that have not been visited since 2008.

Lack of bullish momentum and indecision were observed on the daily chart. This means the pair is trapped within a small congestion zone between 1.7050 and 1.7170.

On the other hand, the most dependable DEMAND level is located around 1.7050 (being tested again today) where the pair comes to meet the current uptrend line. 

This constitutes a significant level especially when we consider Friday's bullish reaction towards the same price levels.

Bullish fixation above 1.7000 enhanced the bullish channel scenario, thus enabling the bulls to reach 1.7100 and 1.7160 shortly after.

As expected, the price zone between 1.7140 - 1.7170 keeps providing evident bearish price movement each time a price zone is tested.

A pattern of multiple-tops was confirmed after breakdown of the depicted bullish channel. Moreover, the first bearish target was hit around 1.7055.

To avoid possible sudden reversals, bearish targets should be located at 1.7055 and 1.7000 where obvious demand levels are located. 

On the other hand, risky traders may keep their SELL positions until price level of 1.6965 where the next prominent Demand Level is located.