GBP/USD Technical Analysis – Trying to Launch Rebound
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- GBP/USD Technical Strategy: Flat
- Support:1.6780 (trend line), 1.6730 (May 15 low)
- Resistance: 1.6839 (14.6% Fib exp.),1.6906 (23.6% Fib exp.),
The British Pound is attempting to launch a recovery from support at a rising trend line set from early February. Near-term resistance is at 1.6839, the 14.6% Fibonacci expansion. A break above that on a daily closing basis targets the 23.6% level at 1.6906. Trend line support is now at 1.6780, with a reversal below that eyeing the May 15 low at 1.6730.
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