Weekly technical analysis of GBP/USD:
Trading recommendations:
- The resistance of the GBP/USD pair is set at the level of 1.4611, but a double top is placed at the point of 1.4718. Consequently, the descending movement will probably be lower than the 1.4611 level with the targets at 1.4718 in order to try breaking the weekly pivot point (1.4618). The pair will continue its movement towards the levels of 1.4718. On the contrary, the support has already been set at 1.4505. It will be rather profitable to buy above this level to retest it in the long period. Therefore, buy deals are recommended above the 1.4505 level with targets at 1.4611 and 1.4718 to reach the double top.
General idea about the pivot point.
- Resistance 3 and support 3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well in the sideways markets, as the prices are most likely to be located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released affects the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3. If the trend breaks resistance or support, it is likely to result in a significant price movement, it is also referred to as a breakout.
