GBP/USD weekly technical levels for September 2 – 6, 2013

Weekly technical levels:

Trading recommendations:

GBP/USD: According to the previous events, the price has still been trapped between 1.5595 and 1.5560.

Buy above 1.5515 with the first target of 1.5570, it might resume to 1.5603.
Below 1.5610 look for further downward movement with 1.5566 and 1.5525 targets.

Notes:

The level of 1.5609 will be formed double top.
1.5513: The weekly pivot point for September 2 – 6, 2013,

General idea about the pivot point:

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 the 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 the movement. 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.

The material has been provided by InstaForex Company – www.instaforex.com

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