FX.co ★ GBP/USD: intraday technical analysis for May 16, 2013.

Overview:

According to previous events, the price has still been trapped between 1.5263 and 1.5165 so it is of the wisdom to be careful at this range area around the level 38.2% of Fibonacci retracement levels. Therefore, first step is to wait for a period of tight sideway range market before breakouts. Probably the market is going to start showing the signs of bullish market. In other words, it will be a good sign to buy above the support 2 (1.5115) with a first target of 1.5253 and it will climb towards the first resistance. However, if the pair could not break this resistance, hence the market will indicate a bearish opportunity below 1.5315 (it should be noted that the 50% of Fibonacci retracement level is 1.5315) then the level is going to act really as strong resistance. For that it will be a good sign to sell below 1.5315 with a first target of 1.5280 and it is going to call for downtrend in order to continue a bearish market towards 1.5170.