Trading recommendations:

• The GBP/USD pair has still moved between the area of 1.5990 and 1.5897. It should notice that the levels of 1.5897 and 1.5868 represent the weekly support 1 and the double bottom respectively in H1 chart. So, resistance had set at the levels of 1.5988 (38.2% Fibonacci retracement levels). Therefore, sell below the level of 1.5988 with the first target at the 1.5900 price, then It will call for a downtrend in order to continue its bearish movement towards 1.5868 in order to test the double bottom. At the same time, the stop loss should be placed at the level of 1.6039 (above the weekly pivot point). On the other hand, the support will set around the spot of 1.5800; then buy above 1.58 (if the trend fails to close below it) with a target at 1.5866 in coming days.

Observations:

• The resistance will set at the level of 1.5988 today.
• The double top is going to set at the 1.5868 price.
• The area of 1.5988 is useful spot to sell in the long term.
• We expect a range of 87 pips on November 6, 2014.
• 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 significant news to influence, 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.