FX.co ★ Intraday technical levels and trading recommendations on GBP/USD for September 16, 2014

After testing price levels around 1.7180 in July, the bears initiated the manifested downtrend which is maintained within the depicted bearish channel.

Two weeks ago, the GBP/USD pair established a congestion zone between the price levels of 1.6630 and 1.6530 then extensive bearish pressure was applied near the upper limit of the bearish channel.

Despite the weekly closure at 1.6324  (achieved on Friday) , the pair opened on a bearish gap of about 150 pips. This enabled the bears to test 1.6058 shortly after ( on Tuesday ).

Significant bullish recovery is obviously manifested around 1.6070. Bullish engulfing daily candlestick was expressed on Wednesday. Thus, indicating a high probability of bullish reversal provided that no DAILY closure occurs below the Weekly Demand Level at 1.6140. 

The GBP/USD pair has been down-trending for almost one month. Moreover, evident bearish momentum keeps pushing lower without significant bullish correction.

Any bullish fixation above price one of 1.6150 ( Tuesday's highest level ) hinders the current steep down-trend allowing a bullish corrective move to take place towards 1.6350 and 1.6410 ( 61.8% Fibonacci Levels ).

A valid SELL entry would be expected at retesting of the previously mentioned price zone (1.6350 - 1.6410 ).

On the other hand, re-fixation below 1.6135 ( depicted on the chart ) hinders the current corrective move. Another bearish impulse towards 1.5910 would be expected then ( low probability ).