Technical analysis of GBP/USD for February 19, 2014

Overview:

• It should be noted that the resistance (1.6773) and the support (1.6510) are considered to be clear indicators of the maximum range of extreme volatility on February 19, 2014, though it is possible to pass them through. Therefore, according to the previous events, the GBP/USD pair has still been trapped between 1.6750 and the weekly pivot point at the level of 1.6628. Also, it should note that the 1.6626 price will act as a minor support. Thence, probably the market is going to start showing the signs of bearish market below the price of 1.6773, because it represent a major resistance. In other words, it will be a good sign to sell below the resistance (1.6773) with the first target of 1.6628 in order to try break the weekly pivot point, then it will call for downtrend to continue its bearish movement towards 1.6501(the level of 1.6501 is represented a strong support for today).

Notes:

• Resistance: 1.6773
• Support: 1.6510
• Range: 120 pips.

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