Weekly technical levels of the GBP/USD pair.
Overview :
- The psychological level of the GBP/USD pair has set at the level of 1.6627.This level is acting as strong resistance and it coincides with the ratio of 38.2% of Fibonacci retracement levels in the daily chart. Therefore, the first key level will set at the level of 1.6622 (the weekly pivot point). Furthermore, the trend was very clear and was indicating a downtrend. Thus, we expect that the trend is going to call for a bearish market at the level of 1.6622 because sellers are asking for a high price. As a result, sell at the price of 1.6622 with the target of 1.6510. Also, it should be noted that the level of 1.6110 represents the weekly support 1.
Observations :
- Major support for August 25-29, 2014: 1.6453
- Major resistance for August 25-29, 2014: 1.6685
- We expect a new range about 195 pips.
- If the trend is upward, then the strength of the currency will be defined as following: GBP is in an uptrend and USD is in a downtrend.
- 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 trapping and going up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
The material has been provided by InstaForex Company - www.instaforex.com
