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GBP/USD Technical Analysis: Support Above 1.53 at Risk

GBP/USD Technical Analysis: Support Above 1.53 at Risk

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.5322, 1.5180, 1.5117
  • Resistance: 1.5440, 1.5551, 1.5601

The British Pound is edging lower as expected against the US Dollar after putting in a Bearish Engulfing candlestick pattern. Near-term support is at 1.5322, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 1.5180. Alternatively, a turn above channel floor support-turned-resistance at 1.5440 clears the way for a test of the 38.2% Fib retracement at 1.5551.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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