GBP/USD: Intraday Forecast for August 7, 2012

GBP/USD: Intraday Forecast for August 7, 2012

Weekly Pivot Point: 1.5628.

Sideways Trend: prices are moving within a narrow range between 1.5800 and 1.5480.

GBP/USD "Pound-Dollar":

• Resistance: 1.5750 (Sell below this level).

• Support: 1.5480 (Buy above this level).

Trading Recommendations:

According to the previous events, the price is still between the levels of 1.5800 and 1.5480.

The descending movement will probably be lower than 1.5750 level with the first targets at 1.5620 and 1.5503 levels.

BUY deals are recommended above the 1.5480 level with targets at 1.5630 and 1.5750 levels.

Overview:

GBP/USD: Intraday Forecast for August 7, 2012

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 1.5800 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 level with their first target at the level of 1.5630. From this point, the pair is likely to begin an ascending movement to the point of 1.5703 and further to the level of 1.5750. However, if the pair fails to pass through the level of 1.5750, the market will indicate a bearish opportunity below the strong resistance level of 1.5766. In this regard, sell deals are recommended lower than the 1.5766 level with the first target at 1.5620. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5503.

Source: IntaForex_Analysis