Pivot Point: 1.5507.
GBP/USD:
- Resistance: 1.5760. (Sell below this level).
- Support: 1.5370. (Buy above this level).
Trading Recommendations:
According to previous events, the price has still been trapped between 1.5370 and 1.5760.
- Buy above 1.5370 with target at 1.5450 then 1.5507.
- Below 1.5760 look for further downside with the first target of 1.5650, 1.5575 then 1.5680.
Overview:
It should be noted that the market was not stable and trend was not also so clear (It was in a tight sideway range), according to previous events, the price has still been trapped between 1.5760 and 1.537, so it is wise to be careful in this area. Therefore the first step is to wait for a period of tight sideway range market before breakouts. Then, it is probable that the market is going to show the signs of a bullish market. In other words, it will be a good sign to buy above 1.5370 (Support 3: 1.5396) with the first target of 1.5450 and it'll climb towards 1.5507 (Pivot point). However, if the the pair does not manage to break 1.5760, then the market will indicate a bearish opportunity below 1.5760 and the level will act as a strong resistance, for that it will be good to sell below 1.5760 with a first target of 1.5650 and it will call for downtrend in order to continue bearish towards 1.5575.
Intraday Technical levels (the 3rd of January, 2012):
R3: 1.5624
R2: 1.5583
R1: 1.5548
PP: 1.5507
S1: 1.5472
S2: 1.5431
S3: 1.5396
Definition (s):
Range I – A long-term mean reversion strategy that looks to go against strong divergence from the pair’s average value. It will typically hold trades for an extended period of time and is one of the slower moving trading strategies.
Range II– Like Breakout 2, uses sentiment as a filter for its trades. It will use a simple oscillator range trading strategy but only take the trading signals if SSI is not at extremes. It is fairly short-term in nature and will tend to trade very little during times of strong trending moves. It is likewise one of the most volatility-sensitive trading systems and will tend to do poorly during times of sharp currency moves.
Observation (s):
Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
Stop Loss should NEVER exceed your maximum exposure amounts.
