GBP/USD Technical Strategy: Short at 1.5662, Targeting 1.4861
Floating Profit / Loss: +630 pips
We entered short GBPUSD at 1.5662. Prices are now testing support at 1.4965, the 123.6% Fibonacci expansion. Positive RSI divergence hints a correction higher may be ahead. Initial resistance is at 1.5165, the 14.6% Fib retracement, with a break above that targeting the 1.5289-96 area marked by the 23.6% retracement and a recently broken multi-year range bottom. Alternatively, a move through support exposes the 138.2% expansion at 1.4861. We will continue to hold short and look to any bounce from here as an opportunity to add to the position. A stop-loss will be triggered on a daily close above 1.5490.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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