GBP/USD Technical Analysis – Trend Line Support Holds Up
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- GBP/USD Technical Strategy: Flat
- Support:1.6750 (trend line), 1.6711 (38.2% Fib ret.)
- Resistance: 1.6820 (23.6% Fib ret.),1.6887 (14.6% Fib ret.),
The British Pound is stalling at trend line support set from early February having dropped as expected following the publication of the BOE Inflation Report. A break downward on a daily closing basis initially targets the 38.2% Fibonacci retracement at 1.6711. Near-term resistance is at 1.6820, marked by the 23.6% level, with a turn back above that aiming for the 14.6% Fib at 1.6887.
Risk/reward considerations argue against entering short with prices sitting squarely at relevant support. On the other hand, taking up the long side looks premature without a defined bullish reversal signal. We will remain flat for now, waiting for an actionable opportunity 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.