GBP/USD: Intraday Technical Analysis for November 23, 2011.

Technical analysis

Mohamed Samy

 

Pivot Point: 1.5637.

Time Frame: H4.

Overview:

The GBP/USD broke the support at 1.5700 and turned back to resistance last yesterday. Therefore the pair has already formed a strong resistance at 1.5700 on H4 chart (Red Horizontal Line), Aswell after breaking 23.6% from top to bottom and start signing for bearish market on this level, it should be noted that the price has been set above 23.6% of Fibonacci retracement levels and the price couldn't close below the resistance yesterday 22^nd of November 2011. Futhermore, the RSI (RSI (21) 42.09) has still not positive on the daily frame, so it calls for a new downward. Then, according to previous events, the pair has still been trapped between 1.5702 and 1.5580. For that it is a good sign to sell below 1.5700 with a first target of 1.5590, and continue towards 1.5350 (It also should be noted that a strong support: 1.5350). Meanwhile, if the price could will be able to break the resistance (1.5740) and closure above it on H4, then it will also a good sign to buy as breakout  at 1.5720 with a target of 1.5897 (61.8% of Fibonacci retracement levels).

Intraday Technical Levels:

R3:1.5803
R2:1.5747
R1:1.5693
PP:1.5637
S1:1.5583
S2:1.5527
S3:1.5473

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
First key level at 1.57.
Second key level at 1.535.

Warning (s):

Stop Loss should NEVER exceed your maximum exposure amounts.
Risk to reward ratios are important and should be calculated.

Example 1:
A risk reward ratio of 1:1.5 is recommended:
Risk: 30 pips must make a profit of 45 pips.
30 pips * 1:1.5 = 45 pips.
Example 2:
A risk reward ratio of 1:1.5 is recommended:
Risk: 45 pips must make a profit of 60 pips.
45 pips * 1:1.5 = 60 pips.

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