GBP/USD Weekly Technical Levels for March 12 - 16, 2012

Weekly Technical Levels:

Tip (s):

R3 and S3 are caonsidered as good indicators of the maximum range for the period of extreme volatility. Nevertheless, it is still possible to pass these levels through.

Pivot lines work well on sideways markets, as prices most likely to be located between the R1 and S1 lines.

Within a strong trend the price will be located below the pivot point line and futher continue the movement.

In case of the breaking news release that is likely to influence the market, the price may go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.

Time Frame: H1.

Drag your Fibonacci retracement levels from the lower to the higher levels of the last week from the 5th of February to the 9th of February, 2012 in order to determine the low and high price.

Average = (Higher - Lower) / 2
Average = 1.5772

Range: 219 pips. The value of 50% Fibonacci retracement levels: 1.5772. In the point 1.60 a strong resistance will be formed. In the point 1.54 a strong support will be formed. Volatility:345.4. Thus, the market indicates the higher volatility. It is necessary to mention that the price is still located between the points 1.58 and 1.5615.

Observation (s): If the trend is of upward character, then the strength of the currency will be defined as: GBP is an uptrend and USD is a downtrend. Most of the traders use the Fibonacci retracement to determine the accurate psychological support and resistance levels.
Volatility Formulas: Variation = Average * (Higher - Lower).