News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex: GBP/USD Technical Analysis – Waiting to Re-Enter Short

Forex: GBP/USD Technical Analysis – Waiting to Re-Enter Short

Ilya Spivak, Head Strategist, APAC

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), 1.6785 (38.2% Fib exp.)

The British Pound continues to wait for defined direction cues against the US Dollar, with prices stalling above support at 1.6593 marked by the 23.6% Fibonacci retracement. Near-term resistance is at 1.6742, marked by the February 14 close and a recently broken rising trend line. A break above that aims for the 38.2% Fib expansion at 1.6785. Alternatively, a turn below support aims for the 38.2% retracement at 1.6452.

We booked profits on half of our short GBP/USD trade yesterday and the rest was stopped out at breakeven on the upward spike over the past 24 hours. Our fundamental view favors Sterling weakness but re-entering short is not attractive from a risk/reward perspective at this point as prices hover just above support. We will stand aside for now until another entry opportunity presents itself.

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 to Re-Enter Short

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