The weekly technical levels for GBP/USD pair:
Trading recommendations:
- According to the previous events, the price of GBP/USD is going to move between the levels of 1.4960 and 1.5130. Buy above the level of 1.4960 which represents the weekly support 1 on the H1 chart with the first target at 1.5091 in order to test the double top near the weekly pivot. Then, the trend will be able to continue toward the level of 1.5130. Also, it should be noted that the weekly resistance 1 coincides with the price of 1.5196.
Observations:
- A major support will be set at the level of 1.5132; and support has been already placed at 1.4961 on February 2, 2015.
- The double bottom is set at the point 1.4987.
- We expect a new range about 248 pips.
- If the trend is upward, the strength of the currency will be defined as following: GBP is in an uptrend and USD is in a downtrend.
Notes about the Fibonacci indicator:
- 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 range trade; it looks like the trend is trapping and going up or down. If you sell or buy in the long-term in this period, you will surely lose your profit.
