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- GBP/USD Technical Strategy: Short at 1.6710
- Support: 1.6593 (23.6% Fib ret.), 1.6452 (38.2% Fib ret.)
- Resistance: 1.6699 (trend line), 1.6742 (Feb 14 close)
We sold the British Pound against the US Dollar after prices produced a Bearish Engulfing candlestick pattern below resistance at 1.6742, the February 14 close. The trade is making progress, with prices hovering just above our initial target at 1.6593, the 23.6% Fibonacci retracement. A break below this boundary on a daily closing basis exposes the next objective at 1.6452, the 38.2% level. Near-term rising trend line support-turned-resistance is at 1.6699, with a move back above that exposing 1.6742 anew.
We will continue to hold, with a stop-loss set to be triggered a daily close above the February 17 high at 1.6822.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com