GBP/USD Technical Analysis – Key Trend Line Still in Play
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- GBP/USD Technical Strategy: Flat
- Support:1.6765 (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 last week’s release 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 taking a trade at present withprices wedged too closely between near-term up- and down-side technical barriers. We will continue to wait on the sidelines for the time being.
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.