The weekly technical analysis of GBP/USD pair:
Short overview:
- The GBP/USD pair will be traded between the levels of 1.5600 and 1.5461. Buy above the level of 1.5461 which represents the weekly pivot point on the H1 chart with the first target at 1.5597 in order to test a double top. If the trend can break the double top at the price of 1.5597, the trend will be able to continue toward the level of 1.5635. Notwithstanding, the stop loss should be set at 1.5420.
Observations:
- Major support will set at the point of 1.5450.
- Major resistance has already placed at the 0.5635 level.
- We expect a new range about 82 pips today.
- If the trend is upward, then the strength of the currency will be defined as follows: GBP is in an uptrend and USD is in a downtrend.
- Stop loss should never exceed your maximum exposure amounts. So, your stop loss should be around 60 pips for each position. (Take profit = 3/5 X stop loss).
