Weekly technical levels of GBP/USD for March 10-14, 2014

Weekly technical levels:

The movement of pivot point between resistance and support levels.

• If price at pivot point (1,6713), watch for a move back to resistance 1 (1,6785) or support 1 (1,6640).
• If price at resistance 1 (1,6785), expect for a move to resistance 2 (1,6858) or back towards pivot point (1,6713).
• If price at support 1 (1,6640), expect for a move to support 2 (1,6568)or back towards resistance 1 (1,6785).
• If price at support 2 (1,6568), expect for a move to support 3 (1,6930)or back towards support 1 (1,6640).
• If price at resistance 2 (1,6858), expect for a move to resistance 3 (1,6930) or back towards resistance 1 (1,6785).
• It should note if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 (1,6785) or support 1 (1,6640). But if there is significant news to influence, the market price may go straight through resistance 1 (1,6785) or support 1 (1,6640) and reaches resistance 2 (1,6858) or support 2 (1,6568) and even resistance 3 (1,6930) or support 3 (1,6495).

Observations:

• If the trend is upward, then the strength of the currency will be defined as following: 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 trapping and going up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
• Stop loss should never exceed your maximum exposure amounts.
• As a rule, the market is highly volatile if the last day had huge volatility.

Notes:

• Major support for March 10-14, 2014: 1.6570
• Major resistance for March 10-14, 2014: 1.6853
• We expect a new range about 195 pips.

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