17.10.201112:30 Forex Analysis & Reviews: GBP/USD: Weekly Tips and Tools/Chart for 17-21 of October, 2011.

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Technical levels:

Tip (s):

R₃ and S₃ are good indication for the maximum range for extremely volatile days but can exceeded occasionally.

Pivot lines work well in sideways markets as prices will most likely range between the R₁ and S₁ line.

In a strong trend, price will be low through a pivot point line and keep going.

If there is significant news to influence the market price may go straight through R₁ or S₁ and reach even R₂ & R₃ or S₂ & S₃.

Time Frame: H1

Drag your Fibonacci retracement levels from the lower to the higher of the last week (10 - 14 of October, 2011) in order to determine low and high price.

Average = (Higher - Lower) / 2
Average = 1.5689

50% Fibonacci retracement levels has already formed a strong level at 1.5689.

Volatility:

Variation = Average * (Higher - Lower)

508.32

Observation (s):

If the strength of the trend for pair is an uptrend, then the strength of the currency: GBP is an uptrend and USD is a downtrend.

Most of traders use the Fibonacci retracement to determine accurate psychology level of support and resistance.

Legend:

R: Resistance.
PP: Pivot Point.
S: Support.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.