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Friday, May 25, 2012

GBP/USD Intraday Technical Analysis for May 25, 2012


Weekly Pivot Point: 1.5715.



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GBP/USD:
  • Resistance: 1.6030. (Sell below this level).
  • Support: 1.5624. (Buy above this level).

Trading Recommendations:


According to previous events, the price is still located between the levels 1.5650 and 1.6030.

  • The descending movement will probably take place lower than the 1.6030 level with the first targets at levels 1.5730 and 1.5633.
  • BUY-deals are recommended higher than the 1.562 level with targets at levels 1.57 and 1.5889 (Weekly pivot point).


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 1.5650 and 1.6030, 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 1.5625 level with its first target at the level of 1.5725. From this point the pair is likely to begin the ascending movement to the point 1.5825 and further to the level 1.5900. However, if the pair fails to pass through the level of 1.6030, the market will indicate a bearish opportunity below the strong resistance level 1.6030. In this regard, SELL-deals are recommended lower than the 1.6030 level with the first target at 1.5730. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5633.

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