Weekly technical levels of the GBP/USD pair.
Trading recommendations:
- According to previous events, the price of GBP/USD pair has still been trapping between 1.6835 and 1.6775.
- Buy above the level of 1.6745 (this level is representing the weekly pivot point) with the first target of 1.6841, it might resume to 1.6866 today in order to test the weekly resistance 1.
- Also, it should be noted that the market was so stable and trend was also so clear (upward) last week.
- However, the stop loss should be always be into account, therefore it will be very useful to set your stop loss at the price of 1.6750
General idea about resistance and support:
- R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through.
- Pivot lines work well on the sideways markets as the prices are most likely to be located between the R1 and S1 lines.
- Within a strong trend, the price is expected to be lower than the pivot point line and to continue moving.
- If the breaking news released affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
Observations:
- If the trend is of an upside character, then the strength of the currency will be defined as following: GBO is an uptrend and USD is 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 trapping and going up or down. If you sell or buy for a long term in this period, you will surely lose your profit.
- A breakout strategy that looks to go long when a currency pair breaks above its 24-hour trading range, short on a break below. Unlike a raw channel breakout strategy,
