GBP/USD Intraday Technical Analysis for March 30, 2012

Pivot Point: 1.5915.

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GBP/USD:

• Resistance: 1.6000. (Sell below this level).
• Support: 1.5785. (Buy above this level).
  

Trading Recommendations:

According to the previous events, the price is still located between 1.579 and 1.598 levels.

BUY-deals are recommended higher than the 1.58 level with targets at levels 1.585 and 1.594.
The descending movement will probably take place lower than the 1.6 level with the first targets seen at 1.594, 1.59 and 1.586 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 1.598 and 1.579, 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 1.58 level with its first target seen at level 1.585. From this point the pair is likely to begin the ascending movement to the point 1.59 and further to the level 1.594. However, if the pair does not manage to pass through the level 1.6015, 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 1.595 seen as first target. The pair is likely to turn to downwards continuing the development of the bearish trend to the level 1.585.