Pivot point formula:

• Pivot point = (high (previous) + low (previous) + close (previous)) / 3

General idea about the pivot point.

• Resistance 3 and support 3 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 located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3. If trend breaks resistance or support through is likely to result in a significant price movement, it is also referred to as a breakout.

Notes:

• 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 reach resistance 2 or support 2 and even resistance 3 or support 3. According to the previous events, the GBP/USD pair is going to move between 1.7012 and 1.6950.
• The resistance will be set at the level of 1.7075 and the support has already been placed at the price of 1.935.
• We expect a new range about 160 pips this week.
• The key level will set at the level of 1.7000.
• The level of 1.7062 is going to represent the double top.