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Thursday, June 21, 2012

GBP/USD: Sideways Trend for June 21 - 22, 2012


Weekly Pivot Point: 1.5632.


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Sideways Trend: Prices are moving within a narrow range between 1.5600 and 1.5850.

GBP/USD:
  • Resistance: 1.5906. (Sell below this level).
  • Support: 1.5600. (Buy above this level).

Trading Recommendations:

According to the previous events, the price is still between the levels 1.5600 and 1.5850.

  • The descending movement will probably take place lower than the 1.5906 level with the first targets at levels 1.5783 and 1.565.
  • BUY deals are recommended higher than the 1.5600 level with targets at levels 1.5710 and 1.5850.


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. In the light of the previous events, the price is still between the levels 1.5600 and 1.5850, 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 1.5600 level with its first target at the level of 1.5710. From this point, the pair is likely to begin an ascending movement to the point 1.5850 and further to the level 1.59. However, if the pair fails to pass through the level of 1.5906, the market will indicate a bearish opportunity below the strong resistance level 1.5906. In this regard, SELL deals are recommended lower than the 1.5906 level with the first target at 1.5780. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5670 then 1.5632 (The weekly pivot point).

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