Forex: GBP/USD Technical Analysis – Working to Reclaim 1.65
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- GBP/USD Technical Strategy: Flat
- Support: 1.6410 (38.2% Fib ret.), 1.6349 (23.6% Fib ret.)
- Resistance: 1.6510 (61.8% Fib ret.), 1.6508 (61.8% Fib ret.)
The British Pound has launched a recovery against the US Dollar as we suspected last week. A close above resistance at 1.6508, the 61.8% Fibonacci retracement, exposes the 76.4% level at 1.6569. Alternatively, a move back below the 50% Fib at 1.6462 eyes the 38.2% retracement at 1.6413.
Proximity to near-term resistance as well as the absence of confirmation on a daily closing basis argues against taking a long position at the moment. On the other hand, strong upward momentum absent any substantive indication of reversal is compellingly warns against positioning on the short side. On balance, we remain flat for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com