We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Forex: GBP/USD Technical Analysis – Waiting for Topping Confirmation

Forex: GBP/USD Technical Analysis – Waiting for Topping Confirmation

2014-03-05 03:01:00
Ilya Spivak, Head Strategist, APAC
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6593 (23.6% Fib ret.), 1.6452 (38.2% Fib ret.)
  • Resistance: 1.6742 (Feb 14 close), 1.6811 (23.6% Fib exp.)

The British Pound may be carving out a top against the US Dollar after prices put in a Bearish Engulfing candlestick pattern below resistance at 1.6742, the February 14 close. Near-term support is at 1.6593, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at 1.6452. Alternatively, a reversal above 1.6742 eyes the 23.6% Fib expansion at 1.6811.

A reasonable invalidation point for a short position here is 1.6822, the February 17 high. Assuming a target at 1.6593, risk/reward parameters are skewed against taking a trade. We will opt to wait for double top confirmation on a close below initial support to re-evaluate entry possibilities.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_gbp-usd_body_Picture_12.png, Forex: GBP/USD Technical Analysis – Waiting for Topping Confirmation

Daily Chart - Created Using FXCM Marketscope 2.0

--- 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.

DISCLOSURES

News & Analysis at your fingertips.