What or who is Fibonacci?

Leonardo Pisano Fibonacci (1170–1240 or 1250) was an Italian number theorist. He introduced the world to such wide-ranging mathematical concepts as what is now known as the Arabic numbering system, the concept of square roots, number sequencing, and even math word problems.

Which leads us to the Fibonacci Retracement (FR). The FR are a set of ratios that allow traders to identify key levels of support and resistance for stocks. Unlike moving averages, FRs are fixed. They can be used to identify potential entry and exit points to trade on trending stocks. 

FRs are used to indicate levels of support and resistance for a stock’s price. However, they should be used on longer time frames like the Daily candle to weed out the spikes and whipsaws. FRs are set by the extent of the previous bullish or bearish run and do not change daily in the current trend as moving averages do. Therefore, it can be significantly easier to identify and anticipate support and resistance levels from Fibonacci sequences. 

GBPUSD Outlook: 19 - 23 Sep 2016

High Impact (in red) expected on the following days (GMT +8)

Mon - Japan Holiday

Tue - 8.30pm
Wed - 10.30pm
Thu - 2am, 2.30am, 8.30pm
Fri - NIL

Fib Levels

100 - 1.34436 61.8 - 1.32222
50.0 - 1.31536 38.2 - 1.30861

23.6 - 1.30007
0.0 - 1.28646

Weekly
H - 1.33454
L - 1.29957

O - 1.32646

C - 1.29967

Friday
H - 1.32469

L - 1.29957

O - 1.32367

C - 1.29967

Resistance: 1.30565, 1.31209, 1.31536, 1.32394, 1.33012

Support: 1.30007, 1.29545, 1.28777, 1.28646

If it breaks below Friday's low/close; a fall to 1.29545 is likely. If this support breaks, expect 1.28777, 1.28646.

If not, above 1.3 will see 1.30565 and if it breaks, 1.31209. Price to watch will be at the 1.31536 level.

GBPUSD Outlook: 05 - 09 Sep 2016

High Impact (in red) expected on the following days (GMT +8)

Mon - 4.30pm, US Bank Holiday

Tue - 10pm
Wed - 4.30pm, 9.15pm
Thu - 8.30pm, 11pm
Fri - 4.30pm, 7.45pm

Fib Levels100 - 1.35321
61.8 - 1.32540
50.0 - 1.31686
38.2 - 1.3083123.6 - 1.29762
0.0 - 1.28095

Weekly
H - 1.33518
L - 1.30587
O - 1.31087
C - 1.32915

Friday
H - 1.33518
L - 1.32517
O - 1.32663
C - 1.32915

Resistance: 1.33049, 1.33351,1.33522, 1.33711

Support: 1.3290, 1.32560, 1.32351, 1.31541, 1.31254, 1.30852, 1.30601

A double top may be formed at 1.33711 if it doesn't break above this level. If it does, expect 1.342.

A retest to 1.30831 may still be possible.

GBPUSD Outlook: 29 Aug - 02 Sep 2016

High Impact (in red) expected on the following days (GMT +8)

Mon - UK is closed for a Bank Holiday, 8.30pm (US)

Tue - 10pm (USD)
Wed - 8.15pm, 10pm, 10.30pm
Thu - 4.30pm, 8.30pm, 10pm
Fri - 4.30pm, 8.30pm, 10pm

Fib Levels100 - 1.35321
61.8 - 1.32540
50.0 - 1.31686
38.2 - 1.30831 23.6 - 1.29762
0.0 - 1.28095

Weekly
H - 1.32721
L - 1.30333
O - 1.30732
C - 1.31273

Friday
H - 1.32701
L - 1.31222
O - 1.31908
C - 1.31273

Resistance: 1.3250, 1.3286, 1.3348, 1.342

Support: 1.307, 1.30831, 1.317, 1.319 

Not much movement expected on Monday. Buy the dips and sell the tops.

Expect a return to the 1.3083 levels. If support does not hold at this level, expect a run down to 1.3037 levels. Will be a good  level to buy if price hovers at this (level). If not, 1.3011, 1.298

If 1.3170 holds above, expect this pair to revisit 1.3256 . 1.3286, 1.3348, 1.342

GBPUSD Outlook: 22 Aug - 26 Aug 2016

High Impact (in red) expected on the following days (GMT +8)

Tue - 10pm
Wed - 10.30pm
Thu - 8.30pm
Fri - 4.30pm, 8.30pm

Fib Levels 100 - 1.35321
61.8 - 1.32540
50.0 - 1.31686
38.2 - 1.30831
23.6 - 1.29762
0.0 - 1.28095

Weekly
H - 1.31845
L - 1.28650
O - 1.29170
C - 1.30793

Friday
H - 1.31845
L - 1.30222
O - 1.31636
C - 1.30793

Resistance: 1.30513, 1.30831, 1.31131, 1.31686, 1.32006, 1.3254

Support: 1.30018, 1.29762, 1.29399, 1.29003, 1.28688

Fundamentally, the dollar is weak which is a bit of a tussle for this pair as technically, the pound is weak. Will be watching the Fibs level very closely. Expect the week range to be at 1.297 - 1.31686. 

Trade ideas: If breaks below 1.3, watch for the 1.297 levels. If able to break further, buy at 1.294 levels.

Selling opportunities could be at the 1.3254 levels if we get there. If not watch for 1.32 and 1.3168.

GBPUSD Outlook: 15 Aug - 19 Aug 2016

GBPUSD Outlook: 15 Aug - 19 Aug 2016

High Impact (in red) expected on the following days (GMT +8)

Tue - 4.30pm, 8.30pm
Wed - 4.30pm, 10.30pm
Thu - 1am, 2am, 4.30pm, 8.30pm
Fri - 4.30pm

Fib Levels
100 - 1.35321
61.8 - 1.32550
50.0 - 1.31695
38.2 - 1.30854
23.6 - 1.29788
0.0 - 1.28092

Weekly
H - 1.30955
L - 1.29074
O - 1.30713
C - 1.29092

Friday
H - 1.30336
L - 1.29074
O - 1.29536
C - 1.29092

We may see this pair diving down to the 1.28 levels early in the week. Any retracements will be limited to the high of the 1.302 levels. Sentiments are still bearish for this pair with many supports at the 1.29 levels.

Resistance - 1.30106, 1.30217, 1.30411, 1.30854, 1.31237

Support - 1.28611, 1.28793, 1.29092, 1.29152, 1.29629, 1.29796, 1.29974

GBPUSD Outlook: 8 Aug - 12 Aug 2016

Recap for the week 01 Aug - 05 Aug 2016
Negative fundies for the pound on Thursday and riding on the back of the strength of the dollar (Friday) saw a low for the pound.

Bearish start at the beginning of the week but it rose to nearly 200 pips to 1.33711 before the fall of about 350 pips over the Wed-Fri period.


GBPUSD Outlook: 08 Aug 2016 - 12 Aug 2016

High Impact (in red) expected on the following days (GMT +8)

Tue - 4.30pm, 8.30pm
Wed - 10pm, 10.30pm
Thu - 8.30pm
Fri - 8.30pm, 10pm

Fib Levels
100 - 1.35307
61.8 - 1.32467
50.0 - 1.31607
38.2 - 1.30746
23.6 - 1.29670
0.0 - 1.27949

Weekly
H - 1.33711
L - 1.30206
O - 1.32211
C - 1.30663

Friday
H - 1.31744
L - 1.30206
O - 1.31043
C - 1.30663

If market opens lower than or around the close of 1.30663, wait for the break down to 1.295 to buy. There is a possibility for a retrace to the 50 levels ay 1.31607. If it breaks, there will be a resistance at 1.32243. This will be a good short level.

Resistance - 1.30746, 1.31607, 1.32243, 1.32759, 1.34820

Support - 1.30139, 1.29537, 1.28936