Gbp/usd - Trading Strategy, Trigger Points, and Support and Resistance Levels

Gbp/usd - Trading Strategy, Trigger Points, and Support and Resistance Levels


RBS has given the following trading strategy, trigger points, and support and resistance levels:
TRADING STRATEGY: Keep fading rallies up to 1.5679/1.5778 targeting the June 1st low at 1.5270 in the longer term
TRIGGER POINTS:
1.5514 - 38.2% retracement of the Apr - Jun sell off
1.5299 - level that has caught a number of lows since late 2010
1.5241 - The annual low so far
1.5606 - March '12 low
1.5514 - 23.6% retracement of the May - June range.
SUPPORT LEVELS: 1.5524,1.5400, 1.5270, 1.5241
RESISTANCE LEVELS: 1.5606, 1.5664, 1.5734
-Note how still the market didn't mange to break the trend line of resistance as outlined above; it is becoming very congested at these levels and the Bollinger bands are beginning to contract, a sign that the market could be entering a ranging period. I (analyst) still favour selling rallies rather than buying dips within the range and although the range is quite wide prefer selling any rallies into the 1.5658/1.5778 zone with the stops above the latter of those levels. The trend intersects price at 1.5679 today, so that is another level to watch in the short term.

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