29.11.201213:02 Forex Analysis & Reviews: GBP/USD: Technical Analysis for November 29, 2012

Long-term review

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Weekly Pivot Point: 1.5985.

GBP/USD "Pound-Dollar":
Resistance: 1.6100(sell below this level).
Support: 1.5903 (buy above this level).

Trading Recommendations:
According to the previous events, the price is still between the levels of 1.5955 and 1.6040.
The descending movement will probably be lower than 1.6100 level with the first targets at 1.6045 and 1.5925 levels.
Buy deals are recommended above the 1.5903 level with targets at 1.6013 and 1.6085 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 1.5955 and 1.6040, 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 1.5903 level with their first target at the level of 1.5980. From this point, the pair is likely to begin an ascending movement to the point of 1.6030 and further to the level of 1.6100 (it will act as a strong resistance for this week). However, if the pair fails to pass through the level of 1.6100, the market will indicate a bearish opportunity below the strong resistance level of 1.6100. In this regard, sell deals are recommended lower than the 1.6100 level with the first target at 1.6040. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5990 then 1.5920 (the weekly support 1).

Weekly Pivot Points:
R3: 1.6258
R2: 1.6154
R1: 1.6089
PP: 1.5985
S1: 1.5920
S2: 1.5816
S3: 1.5751

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

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