Pivot Point: 1.5530.
GBP/USD:
- Resistance: 1.5700. (Sell below this level).
- Support: 1.5375. (Buy above this level).
Trading Recommendations:
According to previous events, the price is still trapped between 1.5370 and 1.5750.
- Buy above 1.5375 with the target at 1.5555 and then at 1.5650.
- Below 1.5700, look for further downside movement with the first target of 1.5650, 1.5575 and then of 1.5450.
Overview:
It should be noted that the market was not stable and the trend was not also clear (it was in a tight sideway range), according to previous events, the price is still 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 sideways market before breakouts. Then it is probable that the market will show the signs of a bullish market. In other words, it will be a good sign to buy above 1.5375 (Support 2: 1.5369) with the first target of 1.556 and it'll climb towards 1.5622, then to 1.5670.
However, if the pair does not manage to break through 1.5750, the market will indicate a bearish opportunity below 1.5700 and the level will act as a strong resistance, for that it will be good to sell below 1.5700 with the first target of 1.5625 and it will call for a downtrend in order to continue bearish trend towards 1.5536.
Intraday Technical levels (January 6, 2012):
R3: 1.5753
R2: 1.5691
R1: 1.5592
PP: 1.5530
S1: 1.5431
S2: 1.5369
S3: 1.5270
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.
