Weekly Pivot Point: 1.5839.

Weekly Pivot Points:

R3: 1.6067
R2: 1.5981
R1: 1.5925
PP: 1.5839
S1: 1.5783
S2: 1.5697
S3: 1.5641

GBP/USD "Pound-Dollar":
• Resistance: 1.5950 (sell below this level).
• Support: 1.5800 (buy above this level).

Trading Recommendations:

According to the previous events, the price is still between the levels of 1.5813 and 1.5888.

• The descending movement will probably be lower than 1.5950 level with the first target at 1.5913 and 1.5840 levels.
• Buy deals are recommended above the 1.5800 level with targets at 1.5903 and 1.5947 levels.

Overview:

It should be noticed that the market showed the signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Due to the previous events, the price is still between the levels of 1.5813 and 1.5888, so it is recommended to be careful while making deals in this area. Therefore, it is necessary to wait till the sideways channel is passed through. Then the market will probably show the signs of a bullish trend. In other words, buy deals are recommended above 1.5800 level with their first target at the level of 1.5840 (The weekly pivot point). From this point, the pair is likely to begin an ascending movement to the point of 1.5903 and further to the level of 1.5947. However, if the pair fails to pass through the level of 1.5950, the market will indicate a bearish opportunity below the strong resistance level of 1.5950. In this regard, sell deals are recommended lower than the 1.5950 level with the first target at 1.5913. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5840 then 1.5783 (The weekly support 1, for September 3 - 7, 2012.).

If you have any questions or requests, please feel free to contact me: [email protected].