FX.co ★ GBP/USD intraday technical levels and trading recommendations for September 11, 2014

In July 15, extensive bearish momentum was gathered. Since then, the GBP/USD pair has been down-trending within the depicted bearish channel.

Two successive bearish impulses were expressed around 1.7180 and 1.6630 corresponding to the upper limit of the depicted channel.

Price level of 1.6140 constitutes a prominent weekly support to meet the pair. Temporary breakdown took place this week as depicted on the chart. However, bullish rejection is being witnessed in the recent daily candlesticks ( note the bullish engulfing daily candlestick which emerged Yesterday ).

We expect the GBP/USD pair to retrace towards the price zone of 1.6330-1.6400 where a new bearish impulse is expected to be applied offering a valid low-risk sell entry. Stop loss should be set as daily closure above 1.6410.

This price zone corresponds to the upper limit of the depicted bearish channel as well as prominent Fibonacci level of the recent bearish impulse between 1.7180 and 1.6060.

On the other hand, risky traders can take a long position around the current prices as long as the bulls keep defending the recent low at 1.6050. Bullish targets to be located at 1.6315 and 1.6450.