FX.co ★ GBP/USD weekly technical levels for October 14-18, 2013

Weekly technical levels:

General idea about the pivot point:

• R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well in the sideways markets as the prices are most likely to be located between the R1 and S1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.

Trading recommendation:

• According to the previous events, the price of GBP/USD is still between the levels of 1.5980 and 1.5945.
• The descending movement will probably be lower than the 1.6045 level with the first targets at 1.6000 and 1.5915 in order to form a double bottom at this level.
• Buy deals are recommended above the 1.5875 level with targets at 1.5925 and 1.6 to test the weekly pivot point.