GBP/USD: Intraday Technical Analysis for December 5, 2012
Weekly Pivot Point: 1.6010.
GBP/USD "Pound Dollar":
Resistance: 1.6125(sell below this level).
Support: 1.6060 (buy above this level for retesting this level for a short period).
According to the previous events, the price is still between the levels of 1.6123 and 1.6040.
The descending movement will probably be lower than 1.6125 level with the first targets at 1.6085 and 1.6060 levels.
Buy deals are recommended above the 1.6060 level with targets at 1.6090 and 1.6125 levels.
It should be noticed that the market
showed the signs of instability. The trend movement was controversial as it took place in the narrow sideways channel. Due to the previous events, the price is still between the levels of 1.6123 and 1.6040, 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 1.6060 level with their first target at the level of 1.6085. From this point, the pair is likely to begin an ascending movement to the point of 1.6105 and further to the level of 1.6125 (it will act as a strong resistance for this week). However, if the pair fails to pass through the level of 1.6125, the market will indicate a bearish opportunity below the strong resistance level of 1.6125. In this regard, sell deals are recommended lower than the 1.6125 level with the first target at 1.6085. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.6060 then 1.5960 (the weekly support 1). It should be noted that the weekly resistance 3 is at the level of 1.6162 then in case you have sold below 1.6125 then you have to place a stop loss at 1.62.
Weekly Pivot Points:
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