Trading recommandations :
- The GBP/USD pair has still been trapped between the levels of 1.5218 and 1.5063. The level of 1.6163 is representing the weekly pivot point. Also, it should be noted that the weekly pivot point is coinciding with the ratio of 50% Fibonacci retracement levels. So, sell below the level of 1.5218 in the short term with the first target of 1.5103, it might resume to 1.5063 in order to test the weekly support 1. Moreover, if the trend manages to break the weekly support 1 at 1.5063, then the trend will continue towards the double bottom at the level of 1.5036.
Observations :
- The market was in a downtrend. Moreover, the trend was so clear because the price moved higher to 1.5200; but the price of the GBP/USD pair has been rebounding lower towards the level of 1.5140.
- The double bottom is set at the price of 1.5036.
- We expect a range of 275 pips this week. The last range was 193 pips.
- The level of 1.5252 is the key level to confirm the bullish market.
- It should be noted that if there is no significant news to influence, the market price will be moving from the pivot point to resistance 1 or support 1. But if there is a significant news, 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.
- If the trend is of an upside character, then the strength of the currency will be defined as following: GBP is an uptrend and USD is a downtrend.
- The stop loss should never exceed your maximum exposure amounts.
The material has been provided by InstaForex Company - www.instaforex.com
