FX.co ★ GBP/USD: Technical Analysis for December 29, 2011.

Pivot Point: 1.5530.

GBP/USD:

• Resistance: 1.5774. (Sell below this level).
  
• Support: 1.5331. (Buy above this level).
  

It should be noted that the market was not stable and trend was not also so clear (It was tight sideway range), as well according to previous events, the price has still been trapped between 1.5774 and 1.5331 so it is of the wisdom to be careful at this area. Therefore first step is wait for a period of tight sideway range market before breakouts. Then, it will probably that the market is going to start showing the signs of bullish market. In other words, it will be a good sign to buy above 1.5331 with a first target of 1.5505 and it'll climb towards 1.5625. However, If the the pair could not break 1.5774, hence the market will indicate a bearish opportunity below 1.5774 then the level will be act really as strong resistance, for that it will a good sign to sell below 1.579 with a first target of 1.57 and it will call for downtrend in order to continue bearish towards 1.5630.

Intraday Technical levels ((29th of December 2011)):

R3: 1.5870
R2: 1.5780
R1: 1.5620
PP: 1.5530
S1: 1.5370
S2: 1.5280
S3: 1.5120

Definition (s):

Range I – A long-term mean reversion strategy that looks to go against strong divergence from the pair’s average value. It will typically hold trades for an extended period of time and is one of the slower moving trading strategies.

Range II– Like Breakout 2, uses sentiment as a filter for its trades. It will use a simple oscillator range trading strategy but only take the trading signals if SSI is not at extremes. It is fairly short-term in nature and will tend to trade very little during times of strong trending moves. It is likewise one of the most volatility-sensitive trading systems and will tend to do poorly during times of sharp currency moves.

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
Stop Loss should NEVER exceed your maximum exposure amounts.