Trading recommandations:
- If the GBP/USD pair falls into the bearish market in order to go further towards the strong support at 1.1090 to test it again. However, the resistance is seen at the level of 1.1315 on September 28, 2015. Hence, it will be wise to sell at this level with the first target at 1.1210 (the weekly pivot point), and it will continue moving towards 1.1004 with a view to test the double bottom.
Review:
- The double top will be formed at the level of 1.1329. This level is going to represent the weekly resistance 1 at the same time.
- The major support was already found at the level of 1.1090. Moreover, the double bottom is also coinciding with the major support (1.1104).
- The price hit the weekly pivot point only last week, because of the series of relatively equal highs and equal lows.
- We expect a new range of 320 pips this week.
- Scenario: If there is no significant news to influence, the market price will be moving from pivot point to resistance 1 (1.1210). But if there is significant news to influence, the market price may go straight through resistance 1 (1.1315) and reach resistance 2 (1.1435) or weekly pivot point (1.3624) and even resistance 3.
- If the trend is upward, then the strength of the currency will be defined as follows: EUR is in an uptrend and USD is in a downtrend.
