Thread: GBP/USD: Tight Sideway Range.
12-15-2011, 12:31 PM #1
GBP/USD: Tight Sideway Range.
Pivot Point: 1.5469.
- Resistance: 1.5525.
- Support: 1.5400.
It should be noted that the market was not stable and trend was not also so clear (It was tight sideway range), aswell according to previous events, the price has still been trapped between 1.55 and 1.54 so it is of the wisdom to be careful at this area. Therefore first step is wait for a period of tight sideway range market before open any position. Then, it will probably that the market is going to start showing the signs of bullish market. In other words, it will be a good sign to buy above 1.54 with a first target of 1.5469 and it'll climb towards 1.5525. However, If the the pair could not break 1.5525, hence the market will indicate a bearish opportunity below 1.5530 then the level will be act really as strong resistance, for that it will a good sign to sell below 1.5530 with a first target of 1.5469 (Pivot point) and it will call for downtrend in order to continue bearish towards 1.5407 (S1).
Intraday Technical levels ((15th of December 2011)):
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.
Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
Stop Loss should NEVER exceed your maximum exposure amounts.
The material has been provided by Instaforex Company - instaforex.com
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