GBP/USD Candlestick Analysis: Rebound Pauses Below 1.55
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GBP/USD Strategy: Long from 1.5373
Rebound Pauses to Digest Below 1.55 Mark
Holding Long, Expecting Rally to Resume
The British Pound paused to consolidate gains below the 1.55 figure against the US Dollar having broken its seven-month down trend. 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. Alternatively, a reversal below the 14.6% Fib at 1.5277 targets falling channel top resistance-turned-support at 1.5095.
We entered long GBPUSD at 1.5373, initially targeting 1.5551. Near-term positioning remains supportive and we will continue to hold the trade. A stop-loss will be activated on a daily close below 1.5194. We will take profit on half of the position and move the stop to breakeven once the first target is reached.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com