Pivot Point: 1.5899.

GBP/USD:

• Resistance: 1.6020. (Sell below this level).
  
• Support: 1.5760. (Buy above this level).
  

Trading Recommendations:

According to previous events, the price is still located between levels 1.5800 and 1.5915.

BUY-deals are recommended higher than the 1.576 level with targets at levels 1.59 and 1.6.
The descending movement will probably take place lower than the 1.6020 level with the first targets at levels 1.59, 1.5855 and 1.57.

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 1.58005 and 1.5915 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 1.576 level with its first target at level 1.5875. From this point the pair is likely to begin the ascending movement to the point 1.59 and further to the level 1.6. However, if the pair fails to pass through the level 1.6020, the market will indicate a bearish opportunity below the strong resistance level 1.6020. In this regard, SELL-deals are recommended lower than the 1.6 level with the first target of 1.59. It is possible that the pair will turn to downward movement continuing the development of the bearish trend to the level 1.57.

Intraday Technical levels (the 12^nd of April, 2012):

R3: 1,6032
R2: 1,5985
R1: 1,5946
PP: 1,5899
S1: 1,5860
S2: 1,5813
S3: 1,5774

Definition (s):

Range I – A long-term mean reversion strategy that looks to go against strong divergence from the pair’s average value. It will typically hold trades for an extended period of time and is one of the slower moving trading strategies.

Range II– Like Breakout 2, uses sentiment as a filter for its trades. It will use a simple oscillator range trading strategy but only take the trading signals if SSI is not at extremes. It is fairly short-term in nature and will tend to trade very little during times of strong trending moves. It is likewise one of the most volatility-sensitive trading systems and will tend to do poorly during times of sharp currency moves.

Observation (s):

Please check out the market volatility before investing, as the sight price may have already been reached and scenarios become invalidate.
Stop Loss should NEVER exceed your maximum exposure amounts.