The GBP/USD pair continues to bounce around the 1.58 level, and on Tuesday saw a selloff to continue the back and forth action. The weekly chart has a shooting star from two weeks ago, and a hammer from last week. This suggests that perhaps we will find ourselves grinding away in this area, and this makes the pair difficult to trade for anything more than a scalp or short-term trade. The 1.59 level continues to offer resistance and a lid on prices, while the 1.57 level is supportive. It is based upon this that we expect the market to bounce between 1.59 and 1.57 in the near-term, and will trade it for scalps when bouncing off of these levels. Once we get a breakout in either direction - we can then assess the situation for longer-term trades.

GBP/USD

GBP/USD Forecast February 22, 2012, Technical Analysis

GBP/USD Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
1.5630
1.5697
1.5734
1.5801
1.5838
1.5905
1.5942

 Fibonacci
1.5697
1.5736
1.5761
1.5801
1.5840
1.5865
1.5905

 Camarilla
1.5743
1.5753
1.5762
1.5801
1.5782
1.5791
1.5801

 Woodie's
-
1.5690
1.5720
1.5794
1.5824
1.5898
-

 DeMark's
-
-
1.5820
1.5791
1.5716
-
-