Pivot Point: 1.5731.
GBP/USD:
- Resistance: 1.5945. (Sell below this level).
- Support: 1.5645. (Buy above this level).
Trading Recommendations:
According to the previous events, the price is still located between 1.5645 and 1.5945 levels.
BUY-deals are recommended higher than the 1.5645 level with targets at levels 1.571 and 1.5825.
The descending movement will probably take place lower than the 1.5945 level with the first targets seen at 1.5855, 1.58 and 1.57 levels.
Overview:
It should be noted that the market revealed the signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Concerning the previous events, the price is still between the levels 1.5945 and 1.5645 so it is recommended to be cautious while making deals in this area. Therefore, it is necessary to wait till the sideways channel is passed through. Then, the market will probably indicate the signs of a bullish trend. In other words, BUY-deals are recommended higher than the 1.5645 level with its first target seen at level 1.572. From this point the pair is likely to begin the ascending movement to the point 1.58 and further to the level to 1.59. However, if the pair does not manage to pass through the level 1.5945, the market will indicate a bearish opportunity below the strong resistance level 1.5925. In this regard, SELL-deals are recommended lower than the 1.593 level with the point 1.585 seen as frst targets. It is possible that the pair will turn to downwards continuing the development of the bearish trend to the level 1.57.
Intraday Technical levels (the 8th of March, 2012):
R3: 1.5827
R2: 1.5792
R1: 1.5766
PP: 1.5731
S1: 1.5705
S2: 1.5670
S3: 1.5644
Definition (s):
Range I – A long-term enables the reversion strategy that is likely to go against the strong divergence from the pair’s average value. Genrally it holds trades for an extended period of time and is one of the slowest moving trading strategies.
Range II– Like Breakout 2 uses sentiment as a trading filter including the usage of the simple oscillator range trading strategy. Trading signals are taking into consideration if SSI is not at extremes. It is quite short-term in nature and is expected to be traded for a short period of time during the strong trending moves. It is likewise one of the most volatility-sensitive trading systems and appears to be of low profit during the periods 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 invalidated.
Stop Loss should NEVER exceed your maximum exposure amounts.
