The weekly technical levels for GBP/USD pair:
Technical levels :
- It should be noted that the market of GBP/USD pair will move between 1.4960 and 1.4867 today.
- Projected high: 1.4963.
- Strong resistance (sell limit): resistance will be formed at the level of 1.4960.
- Current pivot: 1.4903 (weekly pivot point sets at 1.4867).
- Breakout (sell stop): 1.4860.
- Projected low: 1.4822.
Observations :
- We expect a range about 93 pips today.
- The risk of 62 pips must make a profit of 93 pips.
- The value of 100% Fibonacci retracement levels is placed at 1.4944 (double top in H1 chart).
- Below the level of 1.4944 will confirm the bearish market.
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.
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 the prices are most likely to be 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. If the trend breaks resistance or support through, it is likely to result in a significant price movement, it is also referred to a breakout.
The material has been provided by InstaForex Company - www.instaforex.com
