GBP/USD: Intraday Technical Analysis for February 8, 2012.

Pivot Point: 1.5863.

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GBP/USD:

• Resistance: 1.6123. (Sell below this level).
• Support: 1.5725. (Buy above this level).
  

Trading Recommendations:

According to the previous events, the price is still located between levels 1.61 and 1.572.

BUY-deals are recommended higher than the 1.5725 level with targets at levels 1.5820 and 1.59.
The descending movement will probably take place lower than the 1.6123 level with the first targets at levels 1.5965, 1.59 and 1.5835.

Overview:

It should be noted 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 1.61 and 1.572 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 1.5725 level (Support 3: 1.5707) with its first target at level 1.582. From this point the pair is likely to begin the ascending movement to the point 1.5863 and further to the level to 1.59. However, if the pair is not manage to pass through the level 1.6123, the market will indicate a bearish opportunity below the strong resistance level 1.6123. In this regard, SELL-deals are recommended lower than the 1.61 level with the first target of 1.596. It is possible that the pair will turn to downward movement continuing the development of the bearish trend to the level 1.5835.

Intraday Technical levels (the 8^th of February, 2012):

R3:1.6052
R2:1.5978
R1:1.5937
PP:1.5863
S1:1.5822
S2:1.5748
S3:1.5707

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.

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