Pivot Point: 1.5877.

GBP/USD:

• Resistance: 1.5935. (Sell below this level).
  
• Support: 1.5677. (Buy above this level).
  

Trading Recommendations:

According to the previous events, the price is still located between  1.5645 and 1.5945 levels.

BUY-deals are recommended higher than the 1.5677 level with targets at levels 1.577 and 1.59.
The descending movement will probably take place lower than the 1.5935 level with the first targets seen at  1.58, 1.575 and 1.57 levels.

Overview:

It should be noted that the market revealed the signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Concerning the previous events, the price is still between the levels 1.5945 and 1.5645 so it is recommended to be cautious while making deals in this area. Therefore, it is necessary to wait till the sideways channel is passed through. Then, the market will probably indicate the signs of a bullish trend. In other words, BUY-deals are recommended higher than the 1.5677 level with its first target seen at level 1.577. From this point the pair is likely to begin the ascending movement to the point 1.582 and further to the level to 1.59. However, if the pair does not manage to pass through the level 1.5935, the market will indicate a bearish opportunity below the strong resistance level 1.5935. In this regard, SELL-deals are recommended lower than the 1.5935 level with the point 1.58 seen as first target. The pair is likely to turn to downwards continuing the development of the bearish trend to the level 1.57.

Intraday Technical levels (the 20^nd of March, 2012):

R3: 1.6031
R2: 1.5973
R1: 1.5935
PP: 1.5877
S1: 1.5839
S2: 1.5781
S3: 1.5743

Definition (s):

Range I – A long-term enables the reversion strategy that is likely to go against the strong divergence from the pair’s average value. Generally it holds trades for an extended period of time and is one of the slowest moving trading strategies.

Range II– Like Breakout 2 uses sentiment as a trading filter including the usage of the simple oscillator range trading strategy. Trading signals are taking into consideration if SSI is not located at highs. It is quite short-term in nature and expected to be traded for a short period of time during the strong trending movements. It is one of the most volatility-sensitive trading systems and appears to be of low profit during the periods of sharp currency moves.

Observation (s):

Please check out the market volatility before investing, because the sight price may has already been reached and scenarios invalidated.
Stop Loss should NEVER exceed your maximum exposure amounts.