Forex: GBP/USD Technical Analysis – Bounce Launched at Trend Line
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Flat
- Support: 1.6496 (trend line), 1.6455 (channel floor)
- Resistance: 1.6594 (23.6% Fib exp.), 1.6662-77 (channel top, 38.2% Fib exp.)
The British Pound recovered against the US Dollar having found support at rising trend line set from mid-November. Near-term resistance is at 1.6594, the 23.6% Fibonacci expansion. A break above that exposes the 1.6662-77 area, marked by the 38.2% level and a rising channel top. Alternatively, a move below the trend line (1.6496) eyes the channel bottom at 1.6455.
Risk/reward considerations argue against entering short with prices wedged tightly between near-term up- and down-side technical barriers. With that in mind, we will continue to stand aside until a more attractive trade setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com