FX.co ★ GBP/USD Weekly Review [ BEARISH VIEW ] June 27, 2011

Only 4 trading days left for the monthly closure and We have a very bearish candlestick .

Strong breakout of the bullish channel indicating strength of the selling pressure on the pair .

Last week's candlestick was very bearish .

The pair is trending down inside a bearish channel through which the currency pair managed to break the bullish channel mentioned before .

Successful break of the support level 1.6075 last week took place now acting as resistance .

Now price is testing the daily support level 1.5930 .

The pair is going to test the lower limit of this bearish channel

It's expected that these levels would manage to limit the decline of the pair temporarily .

Review :

The view for the currency pair is bearish As :

1. The currency pair broke the bullish weekly channel .

2. The current Monthly candlestick is very bearish

3. The pair is trending down inside bearish channels on both 4H , Daily timeframes

Trade Recommendations :

If the current levels manage to limit further decline then we should watch levels 1.6100-1.6180 as a good SELL entry area .

with TP at 1.5950 - 1.5850 - 1.5750 with SL 4H closure above 1.6180