GBP/USD Weekly Technical Report 15-19/10/2012

 Ahead of the weekly closing on Friday, we discussed that the GBP/USD pair should have to re-test the previous broken 23.6% Fibonacci level of the CD leg of the harmonic double top Bat pattern to regain the required momentum to move lower. Actually, the pair has moved ideally according to our technical idea, touching 23.6% from the underside then started to show bearish momentum which may continue during this week with a break below SMA 50 which is located at 1.5985. To conclude, the bearish effect of our efficient harmonic structure is still in progress chiefly targeting 1.5750 regions as far as 1.6310 holds.

The trading range for this week is among key support at 1.5730 and key resistance at 1.6310.

The general trend over short term basis is to the     downside     targeting     1.4225     as far as areas of    1.6875      remain intact.

Support    1.6025    1.5985    1.5880    1.5820    1.5750
Resistance    1.6100    1.6165    1.6225    1.6250    1.6310
Recommendation    Based on the charts and explanations above our opinion is, selling the pair below 1.5985 targeting 1.5750 and stop loss above 1.6165 might be appropriate this week.