Forex: GBP/USD Technical Analysis – Channel Resistance Threatened
To receive Ilya's analysis directly via email, please SIGN UP HERE
- 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.
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.