FX.co ★ Technical analysis of GBP/USD for October 24, 2014

Overview:

• The GBP/USD pair is still moving between 1.6025 and 1.6122. So, we expect a large range about 97 pips in the future. The breakout seen at the ratio of 50% Fibonacci retracement level (the triple top in H1 chart) for the key level is set at the level of 1.6199 because it represents strong resistance and it coincides with the 50% Fibonacci retracement level and another strong resistance is set at the ratio of 38.2% Fibonacci retracement level around the spot of 1.6122. As it is known, history will probably repeat itself at this level again. Therefore, it will be a good sign to sell below 1.6122 with the first target of 1.6020. It will call for a downtrend in order to continue its bearish movement towards 1.5983 in coming hours. On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently the stop loss should be placed above the triple top at the price of 1.6200. However, check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.

Review:

• It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is, the market price may go straight through resistance 1 or support 1 and reaches resistance 2 or support 2 and even resistance 3 or support 3.
• The support of GBP/USD pair is projected at the level of 1.5980 today.
• The value of 38.2% Fibonacci retracement levels is: 1.6122.
• Volatility:181,72 As a rule, the market is highly volatile if the last day had a huge volatility.