Pivot Point: 1.5367.
GBP/USD:
- Resistance: 1.5485. (Sell below this level).
- Support: 1.5280. (Buy above this level).
Trading Recommendations:
According to previous events, the price has still been trapped between 1.5270 and 1.5500.
- Buy above 1.5280 with target at 1.537 then 1.546.
- Below 1.5485 look for further downside with the first target of 1.537, 1.526 then 1.52.
Overview:
It should be noted that the market was not stable and the trend was not also so clear (It was in a tight sideway range), according to previous events, the price is still trapped between 1.5270 and 1.5500, 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 1.5280 (Support 1: 1.5245) with the first target of 1.53 and it'll climb towards 1.545, then 1.55. However, if the pair does not manage to break 1.55, So the market will indicate a bearish opportunity below 1.5482 and the level will act as a strong resistance, for that it will be good to sell below 1.55 with a first target of 1.537 and it will call for downtrend in order to continue bearish trend towards 1.525.
Intraday Technical levels (the 13rd of January, 2012):
R3: 1.5669
R2: 1.5579
R1: 1.5457
PP: 1.5367
S1: 1.5245
S2: 1.5155
S3: 1.5033
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.
