Weekly technical levels:
Trading recommendations:
GBP/USD: According to the previous events, the price has still been trapped between 1.5570 and 1.5600.
Buy above 1.5500 with the first target of 1.5570, it might resume to 1.5605. Below 1.5630 look for further downward movement with 1.5536 and 1.55 targets.
Notes:
The level of 1.5536 will be formed double bottom. 1.5607: The weekly pivot point for August 23 - 30, 2013
General idea about the pivot point:
R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well on the sideways markets, as the prices are most likely to be located between the R1 and S1 lines. Within a strong trend the price is expected to be lower than the pivot point line and continue the movement. If the breaking news released may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.