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Forex: GBP/USD Technical Analysis – Short Trade Target in Sight

Forex: GBP/USD Technical Analysis – Short Trade Target in Sight

2014-03-12 02:00:00
Ilya Spivak, Head Strategist, APAC
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Talking Points:

  • 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.

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dailyclassics_gbp-usd_body_Picture_12.png, Forex: GBP/USD Technical Analysis – Short Trade Target in Sight

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.

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