Weekly Technical Levels:

Tip (s):

R3 and S3 are good indication for the maximum range for extremely volatile days but can be exceeded occasionally.

Pivot lines work well in sideways markets as prices will most likely range between the R1 and S1 line.

In a strong trend, price will be low through a pivot point line and keep going.

If there is significant news to influence the market price may go straight through R1 or S1 and reach even R2 & R3 or S2 & S3.

Time Frame: H1.

Drag your Fibonacci retracement levels from the lower to the higher of the last week (24th - 28th of October, 2011) in order to determine low and high price.

Average = (Higher - Lower) / 2
Average = 1.6021

• Range was: 262 pips (upward).
• The value of 50% Fibonacci retracement levels is: 1.6021
• 1.5835 will be formed a new support.
• 1.6300 will be formed a new resistance.
  
• Volatility is 419.80 so the market has called for a high volatile.
• It should be noted that the price has still been trapped between 1.59 and 1.615.
  

Observation (s):

• If the strength of the trend for pair is an uptrend, then the strength of the currency: GBP is an uptrend and USD is a downtrend.
• Most of traders use the Fibonacci retracement to determine accurate psychology level of support and resistance.
  
• Volatility Formulas: Variation = Average * (Higher - Lower).