Technical analysis of GBP/USD for December 31, 2015

1451557546_GBPUSDH1.png

Overview:

  • The GThe GBP/USD pair is still moving between in the area of 1.4859 -1.4785. The levels of 1.4841 and 1.4785 represent the support and the double bottom in the H1 chart. So, resistance had set at the levels of 1.4859 (23.6% Fibonacci retracement levels). Therefore, sell below the level of 1.4859 with the first target at 1.4815 then It will call for a downtrend in order to continue its bearish movement towards 1.4785 in order to test the double bottom. At the same time, the stop loss should be placed at the level of 1.4866 (above the support).

Observations:

  • The resistance will set at the level of 1.4859 today.
  • The double top is going to set at 1.4785.
  • The area of 1.4859 is a useful spot to sell in the long term.
  • We expect a range of 74 pips on December 31, 2015.
  • 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 reaches resistance 2 or support 2 and even resistance 3 or support 3.

The material has been provided by InstaForex Company – www.instaforex.com

Tags: