GBP/USD: Intraday Technical Analysis for July 12, 2012
Weekly Pivot Point: 1.5556.
Sideways Trend: Prices are moving within a narrow range between 1.5580 and 1.5480.
• Resistance: 1.5583. (Sell below this level).
• Support: 1.5477. (Buy above this level).
According to the previous events, the price is still between the levels of 1.5580 and 1.5480.
- The descending movement will probably be lower than 1.5580 level with the first targets at 1.553 and 1.5483 levels.
- BUY deals are recommended above the 1.5480 // 1.54 level with targets at 1.5525 and 1.5577 levels.
It should be noticed that the market showed the signs of instability. The trend movement was controversial as it took place in narrow sideways channel. Due to the previous events, the price is still between the levels of 1.5580 and 1.5480, 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 indicate the signs of a bullish trend. In other words, buy deals are recommended above 1.5480 or/and 1.5400 level with its first target at the level of 1.5525. From this point, the pair is likely to begin an ascending movement to the point of 1.5550 and further to the level of 1.5580. However, if the pair fails to pass through the level of 1.5583, the market will indicate a bearish opportunity below the strong resistance level of 1.5583. In this regard, sell deals are recommended lower than the 1.5583 level with the first target at 1.5533. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5480.
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