10.12.201415:59 Forex Analysis & Reviews: Intraday technical levels and trading recommendations on GBP/USD for December 10, 2014

Long-term review

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The GBP/USD pair was trapped between 1.6100 and 1.5890 for almost 20 days before bearish breakout could take place.

Daily fixation below 1.5870 led bearish pressure to the pair so that it reached 1.5620-1.5650 where a prominent consolidation zone was established above.

This week, the GBP/USD pair is finding intraday DEMAND around 1.5580-1.5550 where many recent lows were previously established back in November.

The current DAILY price action favors the bullish scenario initially towards 1.5800.

Monday's bullish engulfing daily candlestick emerged off 1.5550 where the backside of the broken downtrend is located. However, yesterday's daily - Doji - candlestick reflects indecision at the important levels which may give some time for more sideway movement.

4H chart reveals the recent downside movement maintained within the limits of the depicted channel.

Conservative traders were waiting for a bullish pullback towards the price zone of 1.5680-1.5710 for a low-risk SELL entry. Stop Loss should be located at 1.5740.

On the other hand, an obvious 4H fixation below the triple-bottom price zone (1.5600 - 1.5590 ) indicates an upcoming bearish movement towards 1.5480-1.5500 where the lower limit of the current movement channel is located.

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