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
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Forex: GBP/USD Technical Analysis – Holding at 4-Month Support

Forex: GBP/USD Technical Analysis – Holding at 4-Month Support

2014-03-24 23:37:00
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: 1.6469 (61.8% Fib ret., trend line), 1.6386 (76.4% Fib ret.)
  • Resistance: 1.6536 (50% Fib ret.), 1.6604 (38.2% Fib ret.)

The British Pound appears to have found interim support after an expected reversal downward against the US Dollar. Prices are holding above 1.6469, a barrier marked by a rising trend line set from mid-November and the 61.8% Fibonacci retracement. A breach below this threshold on a daily closing basis exposes the 76.4% level at 1.6386. Alternatively, a reversal above resistance at 1.6536 – the 50% Fib – targets the 38.2% retracement at 1.6604.

Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, entering a long trade looks premature absent a defined bullish reversal signal. We will continue to stand aside for now, waiting for a more attractive setup to present itself.

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

dailyclassics_gbp-usd_body_Picture_11.png, Forex: GBP/USD Technical Analysis – Holding at 4-Month Support

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.