FX.co ★ Technical analysis of GBP/USD for November 21, 2014

Trading recommendations:

• The resistance of the GBP/USD pair is going to set at the level of 1.5735. The pair will go down in all probability cause the downward trend is still powerful on the H4 chart. Consequently, the descending movement will probably be lower than the 1.5735 level with the targets at 1.5642 and 1.5526 (the weekly support 1). On the contrary, the support has already set at 1.5526. Furthermore, it should be noted that it will quite profitable to buy above this level for retesting this level for a short period. Therefore, buy deals are recommended above the 1.5526 level during the correction with the target of 1.5568. So, the GBP/USD pair will move between the levels of 1.5530 and 1.5690 today.
  

Observations:

• We expect a new range about 210 pips this week.
• The key level will set at the level of 1.5660.
• If the trend is upward, then the strength of the currency will be defined as following: GBP is in an uptrend and USD is in a downtrend.
• It should be noted that if there is no significant news to influence, the market price will be moving from the pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.