- According to the previous events, the price of the GBP/USD pair will trade between the level of 1.5318 and 1.5165. The resistance is set at the level of 1.5318. Consequently, the market will indicate a bearish opportunity below 1.5318 because the level of 1.5318 is going to act as strong resistance. Therefore, it will be a good decision to sell below this level today with the first target of 1.5202 in order to test the weekly pivot point on the H1 chart. Equally important, if the trend succeeds to close below 1.5202, the market will continue with the downtrend below the daily pivot point towards the level of 1.5164 with a view to test the double bottom on the H4 chart. However, the stop loss should be placed above 1.5318 at the price of 1.5340.
- So, you might notice that the Fibonacci in a range-trade looks like the trend is trapped and going up and down, if you sell or buy in the long term, you will surely lose your profit. It is valid only in the short term and will tend to trade very little during strong trend moves. It is also one of the most volatility sensitive trading systems.
The material has been provided by InstaForex Company – www.instaforex.com