The weekly technical analysis of GBP/USD pair:
- The support will beat the level of 1.5353, but the double bottom is going to be at 1.5329 on September 22, 2015.
- The GBP/USD pair called for the bearish market from the price of 1.5685 last week.
- So, the price of 1.5685 is representing strong resistance.
- Therefore, we expect that the GBP/USD pair will move between the levels of 1.5658 and 1.5329; for that the range will be around 329 this week.
- If the trend is of an upside character, then the strength of the currency will be defined as followa: GBP is in an uptrend and USD is in a downtrend.
- Stop loss should never exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the last day has a huge volatility.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account.
- Fibonacci is in a range-trade; it looks like the trend is trapped and goes up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
- R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through.
- Pivot lines work well in the sideways markets as prices are most likely to be between the R1 and S1 lines.
- Within a strong trend, the price is expected to be lower than the pivot point line and continue moving.
- If released news affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
The material has been provided by InstaForex Company – www.instaforex.com