Weekly technical levels of the GBP/USD pair.
Observations:
- 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.
- 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, you will surely lose your profit.
- It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.
Notes:
- We expect a new range about 180 pips this week.
- The key level will set at the level of 1.6600.
- The support of the GBP/USD pair has already set at 1.6590. Moreover, the weekly support 1 will set at the same level.
- If the trend fails to close below the level of 1.6590, it will be a good opportunity to buy above 1.6600 with the first target at 1.6704, then it will be continued straight towards 1.6819.
- The price of 1.6704 is representing the weekly pivot point and 1.6819 is going to form a double top.
