GBP/USD Intraday Technical Analysis

GBP/USD Intraday Technical Analysis and Linear Regression Channels for June 7, 2012

Last Friday, the GBP/USD pair tested the lower limit of the Yellow channel around 1.5280 expressing a massive bullish reaction which turned our short-term view for the pair into bullish.
As it was mentioned before, exceeding the Average Daily Range during the last three days of bearish movement indicates a possible bullish retracement which was expected to take place yesterday.
The GBP/USD pair has an Intraday Support Level located at 1.5435 which corresponds to the lower limit of the Yellow Channel which constitutes a valid BUY entry with low risk.
The GBP/USD pair is now testing the upper limits of the Violet channel after extensive bullish movement exceeding the Average Daily Range for Today.
The depicted typical double buttom pattern renders price zone 1.5380-15400 a significant Intraday support zone. In case it is broken through, the way towards 1.5290 will be open.
Based on the previous analysis
The market offers a valid BUY-entry around 1.5435 with SL located below 1.5390.
TP levels are to be located at 1.5465, 1.5495 & 1.5555.