FX.co ★ Weekly technical levels of GBP/USD for December 23 - 27, 2013

Weekly technical levels:

Trading recommendations:

• GBP/USD: According to previous events, the price has still been trapped between 1.6320 and 1.6380.
• Psychological Level is at 1.6300.
• Buy above 1.6300 with the first target of 1.6370, it might resume to 1.6420.
• Below 1.6470 look for further downside with a target at 1.6350 in order to test the weekly pivot point at the level of 1.6346 on December 23, 2013.

Warning:

• Stop loss should never exceed your maximum exposure amounts.
• Risk to reward ratios are important and should be calculated.
• Example:
• A risk reward ratio of 1:1.5 is recommended:
• Risk: 124 pips should make a profit of 186 pips. 124 pips * 1:1.5 = 186 pips.