The pivot point is used as support and resistance at the same time; it is the first level that we observe. For this week the pivot points (weekly and monthly) for GBP/USD are: 1.5516 weekly; 1.5582 monthly.
The British pound is located above the pivot weekly and bellow the Moving Average of 200 periods (blue).
Therefore, the pivot points indicate the following:
1) If the price in September is broken by the pivot point in an upward motion, the market is bullish and, conversely, if the pivot point is broken in a downward motion, the market is bearish.
2) They can provide points of market entry and exit or can be removed which is useful for trading strategy. For example, a sell limit order can be placed on a level support for open if this support is broken and the stop loss can be placed for this order in one of the Resistances.
Signal For 16 - 20 July
Buy long 1.5516 with Take Profit at 1.5704 and with the Stop Loss at 1.5420 or buy rebound 1.5454 with Take Profit at 1.5704.
____WEEKLY_____
Weekly - R3 = 1.5827
Weekly - R2 = 1.5704
Weekly - R1 = 1.5639
Weekly Pivot = 1.5516
Weekly - S1 = 1.5451
Weekly - S2 = 1.5328
Weekly - S3 = 1.5263
_____MONTHLY____
Monthly - R3 = 1.6408
Monthly - R2 = 1.6092
Monthly - R1 = 1.5998
Monthly Pivot = 1.5582
Monthly - S1 = 1.5388
Monthly - S2 = 1.5072
Monthly - S3 = 1.4878
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