The Pivot Point (PPV) 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: 1.5839 weekly; 1.5757 monthly.
The British pound is located above the pivot weekly and above the Moving Average of 200 periods (blue). Therefore, the pivot points indicate the following.
It is probable that the pair will continue its upward move until the second weekly resistance of 1.5960; on the other hand, the indicators show overbought and bullish force depletion. Therefore, it is likely that the pair will return to the 1.5783 support level, in this case we recommend buying at that level and waiting for an upward bounce to first weekly resistance.
Signal For 03 - 07 September, 2012
Sell short bellow 1.5981, take profit at 1.5839, Stop Loss is above (W_R2).
Buy long if rebound is around 1.5783, take profit at 1.5925, Stop Loss is bellow (W_S1).
____WEEKLY_____
Weekly - R3 = 1.6067
Weekly - R2 = 1.5981
Weekly - R1 = 1.5925
Weekly Pivot = 1.5839
Weekly - S1 = 1.5783
Weekly - S2 = 1.5697
Weekly - S3 = 1.5641
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_____MONTHLY____
Monthly - R3 = 1.6446
Monthly - R2 = 1.6179
Monthly - R1 = 1.6024
Monthly Pivot = 1.5757
Monthly - S1 = 1.5692
Monthly - S2 = 1.5335
Monthly - S3 = 1.5180
