17.10.201116:33 Forex Analysis & Reviews: GBP/USD. Weekly and Monthly Pivot Points, For 17- 21 / October, 2011

Long-term review

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Overview:

Since our last analysis, gold has been trading upwards, like we expected, the price tested the level of 1,329.65 on volume below the average. Gold is sill in major bullish corrective phase. We can observe decreasing volume on upper leg, which is a sign that we may see possible bearish movement. We may expect testing of the major FE 100% at the price of 1,334.00 and FR 61.8% at the price of 1,337.00. Be careful with buying at this stage since we have got decreasing volume on upper leg and Gold is at a new high. Our advice is to watch for potential bearish movement in case that we see strong supply on higher volume around our Fibonacci levels. If we don not see stronger supply on the market around our Fibonacci levels, we may see even more upward movement before any larger downward.

Daily pivot Fibonacci points :

Resistance levels:

R1: 1,324.17

R2: 1,325.33

R3: 1,327.20

Support levels:

S1: 1,320.43

S2: 1,319.27

S3: 1,317.40

Trading recommendation: Trading the metal, be careful with buying since we got decreasing volume on upper leg and Gold is in high new ground.

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