GBP/USD Intraday Technical Analysis September 26, 2011

Technical analysis

Mohamed Samy

The reaction of the pair to the support level 1.5340 is very bullish.
We have Friday's daily candlestick closure as a bullish engulfing coming after hiting the support level indicating that breakout of the Fibonacci level 50% (1.5485) may be a false one.
The upcoming level that may act as resistance is 1.5588 which is the upper limit of the support zone which is broken to the downside till now & representing the upper limit of the narrow bearish channel marked on the chart.
For the long-term scale, We have 1.5760 & 1.5890 as strong resistance levels for the pair which may act as valid SHORT entry levels when visited.

We have a suggested LONG position around the level 1.5345 giving profits till now.
Now the pair is trying to re-stabilize above the 50% Fibonacci level  & escape the bearish channel.
For the intraday traders, break of 1.5485 will give a valid LONG signal at the retest with  TP at 1.5580 then 1.5650.
SL should be 4H closure below 1.5430.
http://instaforex.com/forex_analysis/39652?x=OUE