Overview:
- Last week, the GBP/USD pair falled from the level of 1.3444 to the top around 1.3240 and closed at the price of 1.3266. Today, the first support level is seen at 1.3189 followed by 1.3113, while daily resistance is seen at 1.3393. According to the previous events, the GBP/USD pair is still moving between the levels of 1.3189 and 1.3393; for that we expect a range of 204 pips in coming days. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend reversal signs. Furthermore, if the trend is able to break out through the first resistance level of 1.3317, we should see the pair climbing towards the first resistance at 1.3393 in order to test it. Besides, it should be noted that the double top is seen at the point of 1.344. On the contrary, if a breakout takes place at the second support level of 1.3113, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 1.3113.
Intraday technical levels:
- R3: 1.3597
- R2: 1.3521
- R1: 1.3393
- PP: 1.3317
- S1: 1.3189
- S2: 1.3113
- S3: 1.2985
Observations:
- Volatility: 210.01. As a rule, the market is highly volatile if the last day had a huge volatility,
- Range: 204 pips
- Risk of 204 pips must make a profit of 306 (a risk to reward ratio of 1:1.5 is recommended).
- The resistance levels are seen at 1.1393 - 1.3444. (Sellers are asking for a high price).
- The support levels are seen at 1.3113 - 1.3189 (Buyers are bidding at a lower price).
