FX.co ★ GBP/USD intraday technical levels and trading recommendations for February 6, 2015

Overview:

The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with projection target at 1.5300.

The market has already pushed further below, reaching down to 1.5030-1.4980 where the lower limit of the channel has been providing support for the pair over the past few weeks.

The H4 chart shows transition into a sideway movement with mild bearish tendency which has been maintained within the depicted channel untill evident bullish pressure was applied at retesting of 1.5000 last week.

Temporary bullish breakout above the upper limit of the short-term flag pattern (the price level of 1.5170) took place earlier this week.

Persistence above the key-support (the price level of 1.5170) is currently applying strong bullish pressure over the price zone of 1.5290-1.5360 (prominent Fibonacci levels and the upper limit of the depicted movement channel) where bearish rejection should be anticipated.

Trading recommendations:

Look for signs of reversal around the current price zone (1.5290-1.5360) and for a valid SELL entry with SL located slightly above 1.5380.