Forecast:
GBP/USD: (long term)
- According to the previous events, the price has still been trapped between 1.5555 and 1.5515.
- Buy above 1.5420 with the first target at 1.5525, it may resume to move to 1.5616. Stop loss should be set below 1.54.
- Below 1.5690 (1.5719: 100% of Fibonacci retracement levels) look for further descending movement with targets at 1.5530 and 1.5450. Stop loss should be set above 1.5715.
Observations:
- Use historic prices to determine future prices.
- Fibonacci retracement should be used to determine an accurate psychology level of support and resistance, and playing according to it in this kind of period.
- Fibonacci in a range trader (it is looks like the trend is trapping and going up or down, if you sell or buy for a long term in this period you will go sure for losing your profit.
- Stop loss should never exceed your maximum exposure amounts.
- Usually, the market has a high volatile, if the last day had a huge volatility.
