FX.co ★ Technical analysis of GBP/USD for September 5, 2014

Forecast:

• According to the previous events, the price of the GBP/USD pair has still been trapped between 1.6367 and 1.6306.
• The level of 1.6363 represents the daily pivot point. It should be noted that the daily pivot point coincides with the ratio of 38.2% Fibonacci retracement levels.
• Thus, sell below the price of 1.6363 in the short term with the first target of 1.6306 in order to test the double bottom; it might resume to 1.6270 (support) if the trend will be able to break the double bottom at 1.6363.
• The stop loss should never exceed your maximum exposure amounts. Hence, it will be quite profitable to set your stop loss at the level of 1.6395.

Intraday technical levels:

Date:5/09/2014

Pair:GBP/USD

• R3: 1.6578
• R2: 1.6522
• R1: 1.6419
• PP: 1.6363
• S1: 1.6260
• S2: 1.6204
• S3: 1.6101