Long-term review
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Trading recommendations:
- The GBP/USD pair on February 9, 2015. The resistance is going to set at the level of 1.5402, but a double top is placed at the point of 1.5351. Consequently, the descending movement will probably be lower than the 1.5351/1.5402 level with the targets at 1.5195 in order to try breaking the weekly pivot point. The pair will continue movement towards the levels of 1.5130 - 1.5070. On the contrary, the support has already set at 1.7070. Furthermore, it should be noted that it will rather profitable to buy above this level to retest this level in the long period. Therefore, buy deals are recommended above the 1.5070 level with targets at 1.5277 and 1.5351 to reach the double top.
The weekly technical levels for GBP/USD pair Pivot point formula:
- Pivot point = (high (previous) + low (previous) + close (previous)) / 3
General idea about the pivot point.
- Resistance 3 and support 3 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 in the sideways markets, as the prices are most likely to be located between the resistance 1 and support 1 lines.
- Within a strong trend, the price is expected to be lower than the pivot point line and continue moving.
- If the breaking news released may affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3.
- If the trend breaks resistance or support through, it is likely to result in a significant price movement, it is also referred to as breakout.
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