The British pound is trading below the weekly pivot and below the 200 day moving average (Blue). The pair has remained bullish since September 2012. The fact that this level has been broken is a bearish signal, which could extend this week. Although I do not think so, rather we should consider it as an opportunity to buy this pair. So our purchasing strategy is activated only if the pair closes above the 200 day moving average periods and above the weekly pivot. Therefore, we consider that the following signal will have validity for the whole week.

Signals for January 21 - 26, 2013

Buy if the day closes above 1.5957 (W_PPV) with take profit at 1.6061 and 1.6258, stop loss is below 1.5760 (W_S1).

Sell if pullback is at 1.5957 (W_PPV) with take profit at 1.65760, stop loss is above 1.6161.

____WEEKLY_____
Weekly - R3 = 1.6362
Weekly - R2 = 1.6258
Weekly - R1 = 1.6061
Weekly Pivot = 1.5957
Weekly - S1 = 1.5760
Weekly - S2 = 1.5656
Weekly - S3 = 1.5459

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_____MONTHLY____
Monthly - R3 = 1.6672
Monthly - R2 = 1.6490
Monthly - R1 = 1.6365
Monthly Pivot = 1.6183
Monthly - S1 = 1.6058
Monthly - S2 = 1.5876
Monthly - S3 = 1.5751