FX.co ★ GBP/USD Intraday Technical Analysis &Trade Recommendations for January 24, 2012

Yesterday we mentioned that the continuation of the current downtrend is counting on 1.5580-1.5600 (the most important resistance in the short-term).
This resistance area is a confluence of both - a previous strong supply zone and the upper limit of the bearish channel marked on the chart.
Yesterday we recommended SELLING the pair at this price area which is running in profit now after a quite good bearish reaction.

On the H1 chart the view is clearer, as the pair is now forming a possible "Head & Shoulders" reversal pattern after hitting the resistance area 1.5600.
This reversal pattern will be confirmed after closing below 1.5530 which is the neck-line, targeting at 1.5450 as a target for the pattern only.
For those who did not catch the SHORT position yesterday, selling at 1.5575 will be an appropriate entry to catch the right shoulder with low risk.
TP should be located at 1.5550, 1.5500, 1.5450 and 1.5360 with SL located above 1.5675.