The weekly pivot point of GBP/USD pair.
Review:
- If the trend is of an upside character, then the strength of the currency will be defined as following: GBP 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.
- 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 a significant news, 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.
Forecast:
- According to the previous events, the price of the GBP/USD pair has still been trapped between 1.6890 and 1.6790.
- The level of 1.6890 is representing the weekly pivot point. It should be noted that the weekly pivot point is coinciding with the ratio of 38.2% Fibonacci retracement levels.
- So, sell below 1.6890 in the short term with the first target of 1.6931 in order to test the double bottom, it might resume to 1.6786 (the support 1) if the trend will be able to break the double top at 1.6832.
- The stop loss should never exceed your maximum exposure amounts. Thus, it will be too profitable to set your stop loss at the level of 1.6955.
