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Forex: GBP/USD Technical Analysis – Channel Resistance Threatened

Forex: GBP/USD Technical Analysis – Channel Resistance Threatened

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6594 (23.6% Fib exp.), 1.6496 (trend line)
  • Resistance: 1.6655-77 (channel top, 38.2% Fib exp.), 1.6744 (50% Fib ret.)

The British Pound is on pace to deliver the longest winning streak in three months against the US Dollar. Prices are testing resistance is in the 1.6650-77 area, marked by a falling channel top and the 38.2% Fibonacci expansion, with a break above that exposing the 50% level at 1.6744. Alternatively, a move below the 23.6% Fib at 1.6594 aims for a rising trend line set from mid-November, now at 1.6509.

Risk/ reward considerations argue against entering long with prices squarely at near-term resistance. On the other hand, the short side looks unattractive without an actionable reversal signal. With that in mind, we will continue to stand aside and wait for a more attractive setup to emerge.

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dailyclassics_gbp-usd_body_Picture_12.png, Forex: GBP/USD Technical Analysis – Channel Resistance Threatened

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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