20.03.201419:10 Forex Analysis & Reviews: Intraday technical levels and trading recommendations for GBP/USD for March 20, 2014

Long-term review

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As depicted on the chart, the nearest demand level around 50% Fibonacci at 1.6540 was broken down.

The Double-Top pattern scenario is being executed with the neckline located around 1.6600-1.6580.

Daily fixation below this neckline will enable the pair to reach 1.6350 as a projection target.

During the past few days, the GBP/USD pair has been trapped within consolidation range established between 1.6580 and 1.6666. A breakout to the downside taking place this week.

Persistence of the current breakdown will push the pair down to 1.6460 where a prominent bottom was established on January 27 then towards 1.6350 as a projection target for the breakout.

The pair has been moving within a bearish channel which is depicted on the chart. The upper limit around 1.6670 was defended by the bears Yesterday as expected.

As long as the bears are still defending price zone of 1.6700-1.6730, price level of 1.6580 remained under bearish pressure until breakdown took place Yesterday.

Stop loss for the bearish scenario should be located lowered to 1.6660.

Price Levels around 1.6350 should be watched carefully for price action as a possible BUY entry may be taken at retesting.

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