The pound completed a key bullish reversal, as the pair carried out a rally from the low of 1.5102, rising to 1.5322 last week. Thus, it has completely negated our bearish forecast. Given the aggressive nature of the sudden demand, we suspect that there will be a period range below 1.54 and 1.51. Now the pound is positioned above 1.5267 weekly pivot point. We believe this level acts as immediate support. On the other hand, we expect a new bearish sequence could take it to the pound to the levels of 1.5122 and 1.4954. Looking at the graph of monthly pivots you may notice that this pair has resistance at the 1.5491 level and a weekly close below 1.5151 monthly pivot, changing the scenario to a bearish outlook with first support level 1.4867.
Signals for August 05-10, 2013
Sell below 1.5267 (W_PV) with take profit orders at 1.5122 and 1.4954, stop loss is above 1.53.
Buy if the pair rebounds around 1.5267 with take profit at 1.5580 and stop loss below 1.52.
____WEEKLY_____
Weekly - R3 = 1.5748
Weekly - R2 = 1.5580
Weekly - R1 = 1.5434
Weekly Pivot = 1.5267
Weekly - S1 = 1.5122
Weekly - S2 = 1.4954
Weekly - S3 = 1.4809
_____MONTHLY____
Monthly - R3 = 1.6115
Monthly - R2 = 1.5775
Monthly - R1 = 1.5491
Monthly Pivot = 1.5151
Monthly - S1 = 1.4867
Monthly - S2 = 1.4527
Monthly - S3 = 1.4243
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