The weekly technical analysis of GBP/USD pair:
- According to the previous events, the GBP/USD pair is going to move between the levels of 1.5503 and 1.5675 (the double top). Also, it should be noted that the weekly pivot point is found at 1.5576. So, if the trend succeeds to break the weekly pivot point at 1.5576, our advice will be to buy above the level of 1.5576 with the first target at 1.5630. Additionally, the trend will be able to continue toward the level of 1.5675, which represents the double top in the H1 chart.
- If the trend is of an upside character, the strength of the currency will be defined as follows: GBP is in an uptrend and USD is in a downtrend.
- 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 for a long term in this period, you will surely lose your profit.
- R3 and S3 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 on the sideways markets as prices are most likely to be located between the R1 and S1 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 R1 or S1 and even reach R2 and R3 or S2 and S3.