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20.09.201317:28 Forex Analysis & Reviews: GBP/USD intraday technical levels and trading recommendations for September 20, 2013

Long-term review

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Daily view:

The cable invalidated the reversal Head and Shoulders pattern maintaining quite strong bullish momentum to the upside.

Daily closure above 1.5719 (the highest level in August) enhanced further bullish pressure to be applied, so that the bulls could step above 1.5760 (the highest level in June).

Previous bullish swing targeted 100% Fibonacci Expansion level. This rendered the current one targeting the same level which was bypassed when the pair stepped above 1.6035 recording a daily high at 1.6170.

The pair is expressing a bearish Harami daily candlestick which is an indicator for a possible bearish retracement towards 1.5870 then 1.5780 where the established uptrend line comes to meet the pair.

4H view:

Obvious bullish pressure has been applied during the past two weeks rendering 1.5450 a valuable ascending bottom which was established during August.

The ascending channel depicted on the chart gave bullish potential for the pair towards 1.6000 and 1.6170 where the upper limit of the channel is located.

Re-сlosure below 1.6035 enables the bears to initiate an early retracement move towards 1.5770 where the lower limit of the channel is located. That is why price action should be watched there for a continuation for the ongoing uptrend.

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