FX.co ★ GBP/USD weekly technical levels for September 16 - 20, 2013

Weekly technical levels:

Forecast:

GBP/USD: According to the previous events, the price has still been trapped between 1.5975 and 1.5900. Buy above 1.5800 with the first target of 1.5950, it might resume to 1.600 (peak price). Stop loss should be set below 1.5650. Below 1.6000, look for further downside with targets at 1.5875 and 1.5670. Stop loss should be set above 1.6030.

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 losing your profit for sure.
• Stop loss should never exceed your maximum exposure amounts.
• Usually, the market has a high volatile, if the previous day had a huge volatility.