GBP/USD: Technical Analysis for November 15, 2012

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 1.5950 and 1.6000, 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 1.5850 level with their first target at the level of 1.5922. From this point, the pair is likely to begin an ascending movement to the point of 1.5955 and further to the level of 1.5990. However, if the pair fails to pass through the level of 1.5990/1.6000, the market will indicate a bearish opportunity below the strong resistance level of 1.5990. In this regard, sell deals are recommended lower than the 1.5990 level with the first target at 1.5940. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5880 then 1.5843 (the weekly support 1).

Weekly Pivot Points: 
R3: 1.6151
R2: 1.6096
R1: 1.5997
PP: 1.5942
S1: 1.5843
S2: 1.5788
S3: 1.5689

If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.