The fall of the British pound is explained by the downgrade of the UK's credit rating by Moody's by one notch from the highest rating. The pound fell to the lowest since mid-July 2010 to 1.5073. According to the table of monthly pivots, this pair is trading above the third monthly support showing that it is very oversold. We expect a bullish rebound for next few days to cover the gap that left at 1.5240, so if you look at the chart of the weekly pivot, It is located at 1.5267. We recommend selling at this level, with objectives at the first weekly support 1.5026.
Signals for February 25 - March 02, 2013
Sell if pullback is around 1.5267 with take profit at 1.5026, stop loss is above 1.53.
Buy if close is above 1.5280 with take profit at 1.5401 and 1.5642 (W_R2), stop loss is below 1.5026 (W_S1).
____WEEKLY_____
Weekly - R3 = 1.5776
Weekly - R2 = 1.5642
Weekly - R1 = 1.5401
Weekly Pivot = 1.5267
Weekly - S1 = 1.5026
Weekly - S2 = 1.4892
Weekly - S3 = 1.4651
If you would like to get this indicator, feel free to contact me via e-mail: gerardo.porras@analytics.instaforex.com
_____MONTHLY____
Monthly - R3 = 1.6901
Monthly - R2 = 1.6619
Monthly - R1 = 1.6238
Monthly Pivot = 1.5956
Monthly - S1 = 1.5575
Monthly - S2 = 1.5293
Monthly - S3 = 1.4912