Trading recommendations:
- According to the previous events, the GBP/USD pair has still been moving between 1.7179 and 1.7103. It should be noted that the key price is set at the level of 1.7116 (the weekly pivot point for July 7-11, 2014). Equally important, the double top will be formed at the 1.7179 level. As it is known, history will probably repeat itself at this level again. Therefore, it will a good sign to sell below 1.7179 with the first target of 1.7115. It will call for downtrend in order to continue its bearish movement towards 1.7060.
- On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently the stop loss should be placed above 1.7190 at the price of 1.7225.
The weekly technical levels of GBP/USD pair:
Notes:
- If the trend is buoyant, then the strength of the currency will be defined as following: 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 trading range; it looks like the trend is trapping and going up or down. If you sell or buy in the long term, you will surely lose your profit.
- As a rule, the market is highly volatile if the previous day or week had huge volatility (292.30).
