GBP/USD Candlestick Analysis: Standstill Sub-1.55 Continues
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The British Pound advanced for a fifth consecutive week against the US Dollar but prices remain unable to pierce the 1.55 figure. Weekly resistance is now at 1.5479, the 23.6% Fibonacci retracement, with a break above that exposing the 38.2% level at 1.5806. A Spinning Top candle warns a turn lower may be ahead however. Reversing below the 14.6% Fib at 1.5277 targets falling channel top resistance-turned-support at 1.5029.
We entered long GBPUSD at 1.5373and subsequently booked profit on half of the position. While near-term positioning warns the bounce may be exhausted, confirmation of a downturn is absent. With that in mind, we will keep the second half of the long trade open with a stop-loss at the breakeven level (1.5373).
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com