23.11.201210:30 Forex Analysis & Reviews: GBP/USD: Technical Analysis for November 23, 2012

Weekly Pivot Point: 1.5874. 

GBP/USD "Pound-Dollar":
Resistance: 1.5990/1.5960 (sell below this level).
Support: 1.5850/1.5832 (buy above this level).

Trading Recommendations:
According to the previous events, the price is still between the levels of 1.5900 and 1.6000.
The descending movement will probably be lower than 1.5990 level with the first targets at 1.5940 and 1.5855 levels.
Buy deals are recommended above the 1.5850 level with targets at 1.5922 and 1.5990 levels.

Overview:

It should be noticed that the market showed the signs of instability. The trend movement was controversial as it took place in the narrow sideways channel. Due to the previous events, the price is still between the levels of 1.5900 and 1.6000, so it is recommended to be careful while making deals in this area. Therefore, it is necessary to wait till the sideways channel is passed through. Then the market will probably show the signs of a bullish trend. In other words, buy deals are recommended above 1.5850/1.5832 level with their first target at the level of 1.5922. From this point, the pair is likely to begin an ascending movement to the point of 1.5955 and further to the level of 1.5960. However, if the pair fails to pass through the level of 1.5990/1.5960, the market will indicate a bearish opportunity below the strong resistance level of 1.5990. In this regard, sell deals are recommended lower than the 1.5990/1.5960 level with the first target at 1.5920. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5880 then 1.5832 (the weekly support 1).

Weekly Pivot Points: 
R3: 1.6010
R2: 1.5963
R1: 1.5921
PP: 1.5874
S1: 1.5832
S2: 1.5785
S3: 1.5743

If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.