Weekly technical levels:
Forecast:
- According to the previous events, the price of GBP/USD pair has still been trapped between 1.6768 and 1.6697.
- The level of 1.6768 is representing the double top and the weekly pivot point is set at 1.6697.
- Buy above 1.6700 in the short term with the first target of 1.6768, it might resume to 1.6810 if the trend will be able to break the double top at 1.6768.
General overview about the pivot points:
- R3 and S3 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 on sideways markets, as the prices are most likely to be located between the R1 and S1 lines.
- Within a strong trend, the price is expected to be lower than the pivot point line and continue the movement.
- If the breaking news released affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
Observations:
- If the trend is upward, then the strength of the currency will be defined as following: USD is in an uptrend and CHF is in a downtrend.
- 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.
- Stop loss should NEVER exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the last day had huge volatility.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Weekly technical levels of GBP/USD for March 3-7, 2014 . Thanks for your support on Weekly technical levels of GBP/USD for March 3-7, 2014
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