Forex: GBP/USD Technical Analysis – Slowly Inching Through Support
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- GBP/USD Technical Strategy: Pending Short
- Support: 1.6667-80 (Jan 24 high, 14.6% Fib ret.), 1.6593 (23.6% Fib ret.)
- Resistance: 1.6822 (Feb 17 high)
The British Pound may have carved a near-term top against the US Dollar, marked by the appearance of a bearish Evening Star candlestick pattern. The pair has edged past support in the 1.6667-80 area, defined by the January 24 high and the 14.6% Fibonacci retracement, exposing the 23.6% level at 1.6593. A further push beneath that targets the 38.2% Fib at 1.6452. Alternatively, a move back above 1.6667 eyes the February 17 highat 1.6822.
Near-term support is a bit too close to current levels to justify a short position on risk/reward grounds. We will continue to monitor price action from the sidelines for now, looking for a viable selling opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com