FX.co ★ GBP/USD Intraday Technical Analysis for April 6, 2012

Pivot Point: 1.5843.

GBP/USD:

• Resistance: 1.6007. (Sell below this level).
  
• Support: 1.5778. (Buy above this level).
  

Trading Recommendations:

According to previous events, the price is still located between 1.617 and 1.58 levels.

• BUY-deals are recommended higher than the 1.58 level with targets at levels 1.5935 and 1.6.
• The descending movement will probably take place lower than the 1.6007 level with the first targets seen at 1.5945 and 1.5835 levels.

Overview:

It should be mentioned that the market revealed the signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Concerning the previous events, the price is still between the levels 1.617 and 1.58, so it is recommended to be cautious while making deals in this area. Therefore, it is necessary to wait till the sideways channel is passed through. Then, the market will probably indicate the signs of a bullish trend. In other words, BUY-deals are recommended higher than the 1.5778 level with its first target seen at level 1.5940. From this point the pair is likely to begin the ascending movement to the point 1.5970 and further to the level 1.6005. However, if the pair does not manage to pass through the level 1.6010, the market will indicate a bearish opportunity below the strong resistance level 1.6. In this regard, SELL-deals are recommended lower than the 1.6 level with the point 1.5945 seen as first target. The pair is likely to turn to downwards continuing the development of the bearish trend to the level 1.584.