Technical Analysis.
GBP/USD
July 20, 2011.
Pivot Point: 1.6116
Overview:
The GBPUSD broke the resistance at 1.6015 and turned back to support a week ago. Therefore the pair has already formed a strong Support at 1.6084 on H4 chart, further rise could be formed a double top and traget would be at 1.6193. Moreover, after breaking 38.2% and start signing for Bullish market, it should be note that the price has been set above 50% Fibonacci Retracement level. As well, the RSI is still calling for uptrend on daily chart. Thus, according to previous events, the pair has still trapped between 1.6180 and 1.6015, so it is a good sign to Buy above 1.6200 with a first target of 1.6275, and continue towards 1.6325. Meanwhile, if the pivot point (1.6115) breaks and closure below it on H1 it will also a good sign to Sell below 1.6095 with a target of 1.5980.
Technical Levels:
R3: 1.6330
R2: 1.6253
R1: 1.6193
PP: 1.6116
S1: 1.6056
S2: 1.5979
S3: 1.5919