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- GBP/USD Technical Strategy: Flat
- Support:1.6952 (50% Fib exp.), 1.6907 (38.2% Fib exp.)
- Resistance: 1.6998 (61.8% Fib exp.), 1.7053 (76.4% Fib exp.)
The British Pound continued to push higher against the US Dollar, soaring to the highest level in nearly five years. Buyers poised to test resistance at 1.6998, the 61.8% Fibonacci expansion, with a break above that exposing the 76.4% level at 1.7053. Alternatively, a reversal below the 50% Fib at 1.6952 aims for the 38.2% expansion at 1.6907.
The available trading range is too narrow to justify a position at current levels from a risk/reward perspective given volatility as implied by 20-day ATR. With that in mind, we will remain on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com