FX.co ★ GBP/USD intraday technical levels and trading recommendations for April 21, 2015

Overview:

On February 5, a transient bullish channel was established around the levels of 1.5170-1.5200.

Estimated target for this bullish channel was reached at 1.5550 where the previous daily bottoms were located (solid resistance level).

Then, a bearish breakdown of the lower limit of this channel occurred enhancing the bearish side of the market and confirming the Flag pattern as a bearish one.

A significant bearish pressure was applied at the levels of 1.5170 (R2), and 1.4990 (R1 = broken weekly bottom) leading to a quick breakdown.

Persistence below 1.4950 indicated a further bearish decline. Initial projection target for this bearish breakout was located at 1.4700.

Moreover, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established (below 1.4700 which is the most recent bottom).

Last week, evident bullish recovery originated at 1.4560 pushing the GBP/USD pair above the level of 1.4700 looking for better prices to sell.

As anticipated, the bullish pullback towards 1.4950-1.5000 should be used to sell the pair off (significant resistance zone = R1).

It is already running in profits with signs of bearish rejection depicted on the chart (bearish reversal daily candlesticks at retesting of R1, 1.4990).

T/P levels remain projected at 1.4850, 1.4800, and 1.4720. S/L should be set as a daily closure above 1.5025.