Forex: GBP/USD Technical Analysis – Key Channel Bottom in Focus
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Flat
- Support: 1.6419 (channel bottom), 1.6356 (38.2% Fib ret.)
- Resistance: 1.6475 (23.6% Fib ret.), 1.6667 (Jan 24 high)
Prices declined as expected after putting in a Bearish Engulfing candlestick pattern. The pair is now testing support at a rising channel bottom set from set from mid-December, with a break lower on a daily closing basis initially exposing 1.6356. Confirmation remains elusive for the time being however.
Entering short with prices squarely at support is likewise unattractive from a risk/reward perspective. On the other hand, attempting to pick a bottom and trading the pair to the long side would assume support will hold. Without a tangible to make such a leap of faith apparent on the chart, we will stand aside.
Confirm your chart-based trade setups with the Technical Analyzer.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
Contact and follow Ilya on Twitter: @IlyaSpivak
New to FX? START HERE!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.