FX.co ★ Technical analysis of GBP/USD for September 17, 2014

Overview: 

• The price of GBP/USD pair will probably move between 1.3660 and 1.3585 today. We expect a new range about 75 pips as maximum today (the risk of 50 pips must make a profit of 75 pips). Moreover, it should be noticed that the key level is set at the level of 1.6200 (the weekly pivot point is set at the level of 1.6198). Equally important, the value of 38.2% Fibonacci retracement levels is 1.6221; for that the supports stand around this spot for a while in H1 chart. Therefore, it will be a good sign to buy above this spot 1.6200 - 1.6221 with the first target of 1.6300. It will call for uptrend in order to continue its bullish movement towards 1.6344 in order to test the double top. Also, it should be noted that the level of 1.6344 is coinciding with the ratio of 61.8% Fibonacci retracement levels. On the other hand, the stop loss should never exceed your maximum exposure amounts, henec. the stop loss should be placed below the weekly pivot point (1.6200) because below the level of 1.6200 will confirm the bearish market.

Observations: 

• The resistances will be set at the level of 1.6344 and 1.6423. 
• The support has already been placed at the price of 1.6200. 
• We expect a new range about 212 pips this week and around 75 pips today. 
• The key level will set at the level of 1.6198. 
• Please, note that the daily volatility on September 17, 2014 is 164.91. As a rule, the market is highly volatile if the last day had a huge volatility.