FX.co ★ GBP/USD Intraday technical analysis August 18, 2011

GBP/USD currency pair finally broke the congestion range upper limit 1.6500 with daily closure above.

The price has closed again above the broken up-trend line indicating strength of the bulls.

The pair has formed an obvious higher low & on its way to form a higher high inside the marked bullish channel.

The next resistance is located at 1.6700-1.6750 which may be the end of the current bullish wave.

The bullish move is apparent on this 4H timeframe .

The pair is retracing now to test the previous broken highs 1.6500-1.6470 working as support now.

Trade Plan:

Observe the price actions towards 1.6500-1.6470 for any reversal bullish reaction to go LONG.

Closure below 1.6470 opens the way to 1.6400-1.6370 which may support the pair too.

TP will be 1.6570 -1.6600 & SL below 1.6340.