The weekly technical analysis of GBP/USD pair:
Overview:
- According to the previous events, the major support of GBP/USD pair is seen at the level of 1.5377. Moreover, the price hit the weekly pivot point and the support 1 last week. The level of 1.5445 is representing a daily pivot point on May 26, 2015. So, we expect a new range of 68 pips today. Therefore, the EUR/USD pair is going to move between 1.5377 and 1.5445. As a result, sell below the level of 1.5445 in the short term with the first target at 1.5410. If the trend is able to break a new double bottom at 1.5410,the pair might resume to 1.5377.
Observations:
- If the trend is upward, GBP is likely to be in an uptrend and USD is seen in a downtrend.
- Major support is seen at the level of 1.5480.
- Major resistance is seen at the level of 1.5377.
- We expect a new range up to 68 pips today.
- 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 trapped and going up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
- Stop loss should never exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the last day had huge volatility.
