FX.co ★ Technical analysis of GBP/USD for April 2, 2014

The weekly pivot point: 1.6585.

Trading recommendations:

• According to the previous events, the GBP/USD pair has still been trapped between 1.6675 and 1.6610.
• First outlook: Sell below 1.6705 (the weekly resistance 1) with the first target at the 1.6630 price, then It will call for downtrend in order to continue its bearish movement towards 1.6585 in order to test this strong support (it should be noted that the price of 1.6585 is going to form the weekly pivot point on April 2, 2014).
• At the same time, the stop loss should be placed at the level of 1.6725.
• Second outlook: Buy above 1.6580 (if the trend fails to close below it) with a target at 1.6650. It should also be noticed that the price of 1.6650 is representing the double top in H1 chart.

Notes:

• Weekly range: 163 pips.
• Volatility: 181.66. So, the market indicates the higher volatility today.
• The key level will set at the price of 1.6585.