GBP/USD Intraday Technical Analysis and Linear Regression Channels for May 24, 2012 ^2012-05-24

The GBP/USD currency pair witnessed a quick decline from 1.6120 towards 1.5730 during last week.

GBP/USD has intraday support zone located around 1.5740 - 1.5760 which prevented further decline for some time before GBP/USD could break it down.

Resistance zone 1.5840-1.5860 was being tested yesterday when GBP/USD showed significant bearish reaction breaking down 1.5740 - 1.5760 reaching 1.5638 today.

The GBP/USD pair's still having an Intraday Support level located around 1.5640 corresponding to the lower limit of the Blue channel and the backside of the broken bearish Violet channel.

The GBP/USD currency pair has been moving within narrow-ranged bearish channels which seems to be getting broken soon.

Price Level 1.5675 corresponded to the lower limit of the Yellow channel and the Average Daily Range of yesterday movement which constituted a temporary Intraday Support Level.

Price Level 1.5750 on retesting will be a key-level for today's movement as it corresponds to the upper limit of the Yellow channel, the average daily range and previous broken trendline.

Bullish breakout above 1.5695 will probably open the way for the next station at 1.5750 which should be watched for price action.

Showing bearish price action towards 1.5750 triggers the SELL entry with SL above 1.5800. However, its breakthrough will allow GBP/USD to make bullish retracement towards higher levels around 1.5850.

Mohamed Samy is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.

Performed by Mohamed Samy, Analytical expert InstaForex Group © 2007-2013