Notes :
- If the trend is upward, then the strength of the currency will be defined as follows: GBP is in an uptrend and USD 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 trapped moving up or down. If you sell or buy in the long term, you will surely lose your profit.
- Stop loss should never exceed your maximum exposure amounts. So, your stop loss should be around 50 pips for each position.
- Major support for May 19-23, 2014: 1.6730
- Major resistance for May 19-23, 2014: 1.6950
- We expect a new range about 135 pips this week.
Review :
- If price is at pivot point (1.6815), watch for a move back to resistance 1 (1.6898) or support 1 (1.6727).
- If price is at resistance 1 (1.6898), expect a move to resistance 2 (1.6986) or back towards pivot point (1.6815).
- If price is at support 1 (1.6727), expect a move to support 2 (1.6568) or back towards resistance 1 (1.6898).
- If price is at support 2 (1.6644), wait for a move to support 3 (1.6556) or back towards support 1 (1.6727).
- If price is at resistance 2 (1.6986), wait for a move to resistance 3 (1.7069) or back towards resistance 1 (1.6898).
- It should note if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 (1.6898) or support 1 (1.6640). But if there is significant news to influence, the market price may go straight through resistance 1 (1.6898) or support 1 (1.6727) and reaches resistance 2 (1.6986) or support 2 (1.6644) and even resistance 3 (1.7069) or support 3 (1.6556).
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 May 19-23, 2014 . Thanks for your support on Weekly technical levels of GBP/USD for May 19-23, 2014
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