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