FX.co ★ GBP/USD weekly technical levels for November 4-8, 2013

Weekly technical levels:

pivot point:

• R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well in the sideways markets, as the prices are most likely to be located between the R1 and S1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.

Observations:

• If the trend is of an upside character, then the strength of the currency will be defined as following: GBP is in uptrend and USD is in downtrend.
• Fibonacci retracement is used for determining accurate psychological levels of support and resistance. The period of time should be taken into account.
• Fibonacci is in a range trade; it looks like the trend is trapping and going up or down. If you sell or buy in the long-term period, you will surely lose your profit.
• Stop loss should never exceed your maximum exposure amounts.
• As a rule, the market is highly volatile if the previous day had a huge volatility.