GBP/USD Intraday Technical Analysis and Trading Recommendations for July 18, 2012
On Thursday after hitting the price level of 1.5393, the GBP/USD currency pair initiated an obvious uptrend with established top at 1.5575.
The GBP/USD pair managed to bypass its established top at 1.5575 reaching price levels around 1.5675. Since then, the pair failed to make a new high above 1.5675 but managed to break through the lower limit of its bullish Yellow channel around 1.5620.
It’s important to note that there is a possible Double Top reversal pattern that is formed with neck-line located at significant support level 1.5575 which needs to be broken in order to confirm the pattern to be targeting at 1.5470 (the full target of the pattern).
Today, GBP/USD has two important intraday levels to be watched, 1.5635 as a resistance level corresponds to the backside of the broken limit of the Yellow channel and 1.5570 as a support level.
Breakdown of 1.5570 with obvious bearish price action confirms the bearish scenario towards 1.5510 then 1.5470.