Notes:
If the trend is upward, then the strength of the currency will be defined as follows: 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 trapped moving up or down. If you sell or buy in the long term, you will surely lose your profit. Stop loss should never exceed your maximum exposure amounts. So, your stop loss should be around 50 pips for each position. Major support for May 19-23, 2014: 1.6730 Major resistance for May 19-23, 2014: 1.6950 We expect a new range about 135 pips this week.Review:
If price is at pivot point (1.6815), watch for a move back to resistance 1 (1.6898) or support 1 (1.6727). If price is at resistance 1 (1.6898), expect a move to resistance 2 (1.6986) or back towards pivot point (1.6815). If price is at support 1 (1.6727), expect a move to support 2 (1.6568) or back towards resistance 1 (1.6898). If price is at support 2 (1.6644), wait for a move to support 3 (1.6556) or back towards support 1 (1.6727). If price is at resistance 2 (1.6986), wait for a move to resistance 3 (1.7069) or back towards resistance 1 (1.6898). It should note if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 (1.6898) or support 1 (1.6640). But if there is significant news to influence, the market price may go straight through resistance 1 (1.6898) or support 1 (1.6727) and reaches resistance 2 (1.6986) or support 2 (1.6644) and even resistance 3 (1.7069) or support 3 (1.6556).