FX.co ★ Intraday technical levels and trading recommendations on GBP/USD for September 1, 2014

Breakdown of the DEMAND level around 1.6975 allowed a quick decline of the GBP/USD pair initially towards the price zone of 1.6800-1.6820.

While retesting the price zone of 1.6800-1.6820, a bullish pause occurred meanwhile. This corrective movement was stopped below 1.6880 when the bears applied considerable bearish pressure.

Through the previous two weeks, the GBP/USD pair declined again towards 1.6660 and 1.6550.

If the current daily candlestick closes outside the current steep bearish channel (above price level of 1.6600), there will be higher incidence of reversal towards 1.6670 initially.

On the other hand, the next DEMAND level to meet the pair is located around 1.6470-1.6460 where a previous bottom was established in March.  

The price zone of 1.6830 - 1.6800 remains a significant zone as it corresponds to the previous consolidation zone established in June.

However, 4H fixation below this zone exposed the price levels around 1.6600-1.6560 where triple-bottom reversal pattern was established last week.

Note that the GBP/USD pair has been down-trending for almost 20 days without significant correction. However, bullish correction is expected to happen as long as the reversal pattern remains valid.

Thus, any bullish fixation above 1.6600 hinders the current steep trend allowing the reversal pattern to hit its projection target at 1.6670 then 1.6720.