FX.co ★ GBP/USD: weekly technical levels for June 17 -- 21, 2013

Weekly technical levels:

Forecast:

According to previous events, the price has still been trapped between 1.5740 and 1.5690. Buy above 1.5580 with the first target of 1.5475, it might resume to 1.56608. Stop loss should be set below 1.5555. Below 1.5790 (1.5740: 100% of Fibonacci retracement levels) look for further downside with targets at 1.5680 and 1.5590. Stop loss should be set above 1.5830.

Observations:

• Use historic prices to determine future prices.
• Fibonacci retracement should be used to determine an accurate psychology level of support and resistance, and playing according to it in this kind of period.
• Fibonacci in a range trader (it is looks like the trend is trapping and going up or down, if you sell or buy for a long term in this period you will go sure for losing your profit.
• Stop loss should never exceed your maximum exposure amounts.
• Usually the market has a high volatile, if the last day had a huge volatility.