GBP/USD Technical Analysis – Resistance Above 1.69 Tested
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- GBP/USD Technical Strategy: Flat
- Support:1.6839 (14.6% Fib exp.),1.6780 (trend line)
- Resistance:1.6906 (23.6% Fib exp.), 1.6996-1.7015 (May 6 high, 38.2% Fib exp.)
The British Pound continued to recover against the US Dollar, with prices issuing their largest daily increase in two weeks. Initial resistance is at 1.6906, the Fibonacci expansion, with a break above that targeting the 1.6996-1.7015 area marked by the May 6 high and the 38.2% level. Near-term support is at 1.6839, the 14.6% Fib. A reversal beneath that eyes rising trend line support set from February, now at 1.6786.
Risk/reward considerations argue against entering long with prices sitting squarely at relevant resistance. On the other hand, taking up the short side seems premature in the absence of a defined bearish reversal signal. We will remain flat for now.
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.