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26.05.201511:35 Forex Analysis & Reviews: Technical analysis of GBP/USD for May 26, 2015

Long-term review

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The weekly technical analysis of GBP/USD pair:

Overview:

According to the previous events, the major support of GBP/USD pair is seen at the level of 1.5377. Moreover, the price hit the weekly pivot point and the support 1 last week. The level of 1.5445 is representing a daily pivot point on May 26, 2015. So, we expect a new range of 68 pips today. Therefore, the EUR/USD pair is going to move between 1.5377 and 1.5445. As a result, sell below the level of 1.5445 in the short term with the first target at 1.5410. If the trend is able to break a new double bottom at 1.5410,the pair might resume to 1.5377.

Observations:

If the trend is upward, GBP is likely to be in an uptrend and USD is seen in a downtrend.
Major support is seen at the level of 1.5480.
Major resistance is seen at the level of 1.5377.
We expect a new range up to 68 pips today.
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 and going up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
Stop loss should never exceed your maximum exposure amounts.
As a rule, the market is highly volatile if the last day had huge volatility.

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