Pivot Point: 1.5367.
GBP/USD:
- Resistance: 1.575. (Sell below this level).
- Support: 1.540. (Buy above this level).
Trading Recommendations:
According to previous events, the price is still trapped between 1.5750 and 1.54.
- Buy above 1.54 with target at 1.55 then 1.5675.
- Below 1.575 look for further downside pace with the first target of 1.5653, 1.559 then 1.5465.
Overview:
It should be noted that the market was not stable, and the trend was not clear (it was in a tight sideways range), according to previous events, the price is still trapped between 1.5750 and 1.5400, so it is wise to be careful in this area. Therefore, the first step is to wait for a period of tight sideways range 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 1.5400 (Support 3: 1.5437) with the first target of 1.55, and it'll climb towards 1.56, then to 1.5675. However, if the pair does not manage to break 1.5750, the market will indicate a bearish opportunity below 1.5750 and the level will act as a strong resistance, for that it will be good to sell below 1.5750 with the first target of 1.56, and it will call for downtrend in order to continue bearish trend towards 1.555.
Intraday Technical levels (the 24th of January, 2012):
R3: 1.5692
R2: 1.5646
R1: 1.5607
PP: 1.5561
S1: 1.5522
S2: 1.5476
S3: 1.5437
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.
