GBP/USD Technical Analysis – Struggling to Hold Above 1.69
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- GBP/USD Technical Strategy: Flat
- Support:1.6839 (14.6% Fib exp.),1.6794 (trend line)
- Resistance:1.6906 (23.6% Fib exp.), 1.6996-1.7015 (May 6 high, 38.2% Fib exp.)
The British Pound is stalling at chart resistance after bouncing from four-month trend support to launch a recovery against the US Dollar. The first layer of resistance is at 1.6906, the 23.6% Fibonacci expansion. A daily close above that clears the way for a test of the 1.6996-1.7015 area, marked by the May 6 high and the 38.2% level. Initial support is at 1.6839, the 14.6% Fib. A turn below that exposes a rising trend line at 1.6794.
The available trading range is too narrow to justify taking the long or the short side of the market from a risk/reward perspective. We will continue to stand aside for now, waiting for a more attractive 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.