The weekly technical analysis of GBP/USD pair:

Review:

• The support will beat the level of 1.5353, but the double bottom is going to be at 1.5329 on September 22, 2015.
• The GBP/USD pair called for the bearish market from the price of 1.5685 last week.
• So, the price of 1.5685 is representing strong resistance.
• Therefore, we expect that the GBP/USD pair will move between the levels of 1.5658 and 1.5329; for that the range will be around 329 this week.

Observations:

• If the trend is of an upside character, then the strength of the currency will be defined as followa: GBP is in an uptrend and USD is in a downtrend.
• Stop loss should never exceed your maximum exposure amounts.
• As a rule, the market is highly volatile if the last day has a huge volatility.
• Fibonacci retracement is used to determine 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 trapped and goes up or down. If you sell or buy in the long term in this period, you will surely lose your profit.

Tips:

• 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 prices are most likely to be 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 released news affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.