FX.co ★ GBP/USD intraday technical levels and trading recommendations for August 16, 2013

This significant resistance around 1.5400 managed to put bearish pressure leading towards quick retracement reaching daily demand level around 1.5200.

Last week, strong bullish pressure was applied at retesting 50% Fibonacci resulting in bullish engulfing candlestick extending further above 1.5400 (61.8% Fibonacci). This opened the way directly to 78% Fibonacci around 1.5550 which constituted temporary Intraday resistance that held price below for 5 days before bullish breakout took place yesterday.

These events enhanced corrective movement towards 1.5420 where strong bullish pressure was manifested on Monday resulting in quick bullish movement towards 1.5600.

The cable established ascending bottoms around 1.5100, 1.5210 and recently 1.5420 supporting the ongoing bullish bias for the pair.

As long as these structures remain unbroken within the depicted consolidation range, the bulls would remain in control of the market.

Yesterday, the bulls expressed 4H closure above 1.5550 resulting in a quick bullish movement towards initial target around 1.5610.

A counter-trend sell entry may be suggested around 1.5640 with SL located above 1.5675 with targets at 1.5560 and possibly 1.5500.