Weekly technical levels of GBP/USD for February 3-7, 2014

Weekly technical levels of GBP/USD pair:

• Description of pivot point:
• Most of the professional traders and market makers use pivot point to determine potential resistance and support levels. Simply put a pivot point and its resistance and support levels are areas at which the direction of price movement can probably change.
• To identify the pivot point and its resistance/support levels, you should use historic rates to determine future prices. It means using the previous period’s high, low and closing level to determine future resistance and support. So, the pivot point is the central axis (it acts as an orbit) among three up levels that they are referred to resistances and three down levels referred to supports. The pivot point is especially useful in the short term (daily or weekly), as well as it is also used for a range or breakout. We will know more about standard pivot point, Fibonacci pivot point, Camarilla pivot point and Woodie pivot point.

Forecasts and technical levels:

• Projected high: 1.6680
• Breakout (buy stop): 1.6560
• Strong resistance (sell limit): 1.6540
• Current Pivot: 1.6500
• Strong support (buy limit): 1.6403
• Breakout (sell stop): 1.6380
• Projected low: 1.6300

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