Pivot Point: 1.5967.

Time Frame: Daily and H4.

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Overview:

The GBP/USD broke the resistance at 1.5837 and turned back to support last week. Therefore the pair has already formed a strong support at 1.5837 on H4 and daily chart, Aswell after breaking 38.2% and start signing for bullish market on this level, it should be noted that the price has been set above 38.2% of Fibonacci retracement levels and the price couldn't close below the support last week since 21^st of October 2011. Futhermore, the RSI has still positive on the daily frame, so it calls for a new upleg. Then, according to previous events, the pair has still been trapped between 1.5837 and 1.6041. For that it is a good sign to buy above 1.5900 with a first target of 1.6075, and continue towards 1.6190 (61.8% of Fibonacci retracement levels on daily chart and it also should be noted that the resistance 3: 1.6194). Meanwhile, if the support (1.5837) breaks and closure below it on H4, it will also a good sign to sell at 1.5837 with a target of 1.5700.

Trading Recommendations:

According to previous events, the price has still been trapped between 38.2% of Fibonacci retracement and 50%.

Long Buying:

• Buy above 1.5900 with a first target of 1.6075, it might resume to 1.6184.
  

Short Selling:

• Outlook -1-: Swing trade at 1.6200 in order to sell with a traget of 1.6118.
• Outlook -2-: Below 1.5837 look for further downside with 1.5750 and 1.5700 targets.
  

Intraday Technical Levels:

R3: 1.6194
R2: 1.6118
R1: 1.6043
PP: 1.5967
S1: 1.5892
S2: 1.5816
S3: 1.5741

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.

Key level at 1.5900.

Warning (s):

Stop Loss should NEVER exceed your maximum exposure amounts.
Risk to reward ratios are important and should be calculated.

Example 1:

A risk reward ratio of 1:1.5 is recommended:
Risk: 30 pips must make a profit of 45 pips.
30 pips * 1:1.5 = 45 pips.

Example 2:

A risk reward ratio of 1:1.5 is recommended:
Risk: 45 pips must make a profit of 60 pips.
45 pips * 1:1.5 = 60 pips.