The weekly technical levels for GBP/USD pair:
Pivot point formula:
- Pivot point = (high (previous) + low (previous) + close (previous)) / 3
Intraday technical levels:
- Projected high:1.5277
- Breakout (buy stop):1.5222
- Strong resistance (sell limit):1.5192
- Current pivot:1.4895
- Strong support (buy limit):1.4598
- Breakout (sell stop):1.4573
- Projected low:1.4523
General idea about the pivot point.
- Resistance 3 and support 3 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 located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3. The break trough resistance or support is likely to result in a significant price movement.
- It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.
- According to the previous events, the GBP/USD pair is going to move between the levels of 1.4803 and 1.4952.
- Resistance is likely to be set at the level of 1.4981 and support is already placed at 1.4783.
- We expect a new range more than 169 pips this week.
- The key level will be set at the level of 1.4888. The weekly pivot point is set at the same price.
- The level of 1.4994 is going to represent the double top.
The material has been provided by InstaForex Company – www.instaforex.com