FX.co ★ GBP/USD Intraday Technical Analysis [ Linear Regression Channels ] for March 7, 2012

GBP/USD showed massive bearish reaction towards the important resistance 1.5870 which was mentioned yesterday.

Break of 1.5844 leads to a quick decline towards 1.5695 which is yesterda's low.

The pair tested the lower limit of the depcited channels once and reversed to the upside during the first few hours of today.

The GBP/USD pair has the intermediate line of the depicted channels around 1.5740 - 1.5750 acting as an intraday resistance which is very important in case there's strong bearish momentum.

There's a stronger resistance level for the pair today which is at 1.5790 that should give strong bearish movement if tested.

This level corresponds to prominent previous buttom which was broken yesterday and the upper limit of both Blue and Yellow channels of today.

Expected targets for the bearish movement are located 1.5700,1.5630 then 1.5585.

Break of 1.5830 invalidates the expected bearish scenario for today.