FX.co ★ GBP/USD technical analysis for August 29, 2013

Forecast:

GBP/USD: (long term)

• According to the previous events, the price has still been trapped between 1.5555 and 1.5515.
• Buy above 1.5420 with the first target at 1.5525, it may resume to move to 1.5616. Stop loss should be set below 1.54.
• Below 1.5690 (1.5719: 100% of Fibonacci retracement levels) look for further descending movement with targets at 1.5530 and 1.5450. Stop loss should be set above 1.5715.

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.