The weekly technical analysis of GBP/USD pair:
Overview:
- According to the previous events, the GBP/USD pair has been trapping between 1.5774 and 1.5639. The level of 1.5774 (the weekly pivot point) represents strong resistance. Also, it should be noted that the price of 1.5787 is coinciding with a ratio of 50% Fibonacci retracement levels. The minor support set at the level of 1.5666 (the double bottom in the H1 chart). Hence, we expect a range about 135 pips in coming hours. Therefore, the market is going to call for an uptrend from the level of 1.5666. Thus, buy above the level of 1.5666 in the short term with the first target at 1.5774. If the trend is able to break the weekly pivot point, it might resume to 1.5816 in order to test the golden ratio in the same time frame.
Notes:
- Major support sets at 1.5639 and the double bottom sets at 1.5666.
- The level of 1.5774 represents the weekly pivot point.
- Major resistance has already set at 1.5816.
- It should be noted that the weekly range was not very large for the last four weeks (around 234 pips).
