Technical analysis of GBP/USD for November 12, 2014

Overview:

• The GBP/USD pair has set a strong support at the level of 1.5893 around the weekly pivot point. Also, be aware of the supports at 1.5893 and 1.5844. On the other hand, resistance has already placed around the double top at the point of 1.5995 in H1 chart, because minor resistance has set at 1.5972; and the prices of 1.5995-1.6021 represent strong resistance. So, if the trend is of an upside character, then the strength of the currency will be defined as following: GBP is in the uptrend and USD is in the downtrend. Therefore, buy above the level of 1.5893 which represents the weekly pivot point with the first target at the 1.5970 price. Moreover, if the trend does not fail to close above the level of 1.5970, it will call for an uptrend in order to continue its bullish movement towards 1.5995 in order to test this strong resistance (it should be noted that the price of 1.5995 is going to form the weekly resistance 1 and the double top will set at the level of 1.6021). At the same time, the stop loss should be placed at the level of 1.5816.

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