FX.co ★ Technical analysis of GBP/USD for May 23, 2014

 Pivot point: 1.6815

Overview: 

• The GBP/USD pair couldn't break the resistance at the level of 1.6898 on May 23, 2014. Also, it should be noted that this strong resistance has coincided with the double bottom in H1 chart. Moreover, the weekly pivot point had already set at 1.6815. Then, according to previous events, the pair is going to move between 1.6902 and 1.6815. Consequently, we expect a range about 87 pips (1.6902 - 1.6815). Additionally, note that the trend is still setting above the ratio of 50% Fibonacci retracement levels which representing the weekly pivot point. At that point, the level of 1.6815 is really acting as support. Futhermore, the RSI has still positive and above the level of 30. So, it is a good sign to buy above the weekly pivot point (1.6815) with the first target of 1.6870, and continue towards 1.6902 (100% of Fibonacci retracement levels). Notwithstanding, if the trend breaches the level of 1.6815 and closure below it in H4 chart, it will also a good sign to set your stop loss at the price of 1.6580.