The daily chart showed bearish rejection at the upper limit of the ongoing channel around 1.6590 (on January 2) with a quite strong bearish engulfing candlestick.
This was followed by bearish breakdown of the first support trendline located at 1.6490 where a descending high was established last week.Since then, the pair has been consolidating within price range1.6320-1.6500.
On Friday, the bears failed to close below 1.6320 (2nd support trendline). Instead, considerable bullish rejection was expressed.
The technical outlook suggests taking a SELL entry at 1.6460. Daily closure above 1.6460 invalidates this SELL entry.
On the long-term, daily breakdown below 1.6333-1.6300 is a must to collect further bearish momentum to push towards 1.6230-1.6200 initially.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via GBP/USD intraday technical levels and trading recommendations for January 21, 2014 . Thanks for your support on GBP/USD intraday technical levels and trading recommendations for January 21, 2014
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