FX.co ★ Technical analysis of GBP/USD for September 3, 2014

Overview:

• The price of the GBP/USD pair has opened below the weekly support 1 and support 2 at the level of 1.6493. Additionally, it should be noted that the double top is going to set at 1.6506; and the market was in a downtrend three weeks ago. Therefore, the market will probably indicate a bearish opportunity at the level of 1.6510 in the long term. Also, the weekly support 1 and support 2 will act as strong resistance levels on September 3, 2014 because supports become resistances after breaking it this week. So, according to the previous events, the price is still moving between the levels of 1.6522 and 1.6433. From now on, the area below 1.6506 (below the weekly supports) looks for further downside with the first target at the 1.6446 level in order to form the double bottom and continue towards 1.6415 to test support 3 in H1 chart. Notwithstanding, the stop loss should be placed above the weekly pivot point at the price of 1.6485.