The pivot points are important support and resistance levels, it serves to identify whether the price of the pair may decline. Thus, the pivot points may quite successfully serve as input and output indicators. The way the pivot points are operated and the strategy is used depend on the type of an investor.
For GBP/USD weekly and monthly pivot points for this week are 1.6140 and 1.6100 respectively.
The British pound is located bellow the pivot weekly and above the Moving Average of 200 periods (blue). Therefore, the pivot points indicate the following.
It is likely that the pair will continue its downward movement till the level of 1.5990 support. W_S2 is a key level. Below this level a fall to 1.58 could be triggered, so it is likely that the support has strong upward bounce that could take it back to resistance levels of 1.62 and 1.63. Therefore, we recommend buying on the levels of weekly support.

Signals for 08 - 13 october, 2012

Buy long if rebound is around 1.5990, take profit at 1.6140 and 1.6290, and stop-loss is bellow (W_S3).

Buy if closes above 1.6060 (W_S1), take profit at 1.6213, and stop-loss is 1.6095 (W_S2).  

____WEEKLY_____
Weekly - R3 = 1.6363
Weekly - R2 = 1.6290
Weekly - R1 = 1.6213
Weekly Pivot = 1.6140
Weekly - S1 = 1.6063
Weekly - S2 = 1.5990
Weekly - S3 = 1.5913

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 _____MONTHLY____
Monthly - R3 = 1.6858
Monthly - R2 = 1.6583
Monthly - R1 = 1.6375
Monthly Pivot = 1.6100
Monthly - S1 = 1.5892
Monthly - S2 = 1.5617
Monthly - S3 = 1.5409