Last week the British pound found a bottom above the weekly support, the downward pressure began when the pair closed below 1.63, strong resistance, and stopped at the 1.60 psychological support. As it is now trading above the moving average of 50 periods and below the weekly pivot, the pound is likely to fall further. This morning it found a strong resistance at the 1.6138 pivot level and daily fractal of 1.6135, and at this level we recommend selling the pair. A close above this level will cause us to change our bearish strategy pending the pair can go back to test the level of resistance 1.63. Therefore, we consider that the following signal will have validity for the whole week.
Signals for January 07 - 12, 2013
Sell if pullback is at 1.6138 (W_R1) with take profit at 1.5939, stop loss is above 1.63 (W_R2).
Buy if close the day above 1.6140 (W_PVV) with take profit at 1.63, stop loss is bellow 1.6130 (W_PPV).
____WEEKLY_____
Weekly - R3 = 1.6599
Weekly - R2 = 1.6468
Weekly - R1 = 1.6269
Weekly Pivot = 1.6138
Weekly - S1 = 1.5939
Weekly - S2 = 1.5808
Weekly - S3 = 1.5609
If you would like to get this indicator, feel free to contact me via e-mail: gerardo.porras@analytics.instaforex.com
_____MONTHLY____
Monthly - R3 = 1.6672
Monthly - R2 = 1.6490
Monthly - R1 = 1.6365
Monthly Pivot = 1.6183
Monthly - S1 = 1.6058
Monthly - S2 = 1.5876
Monthly - S3 = 1.5751
