GBP/USD Technical Analysis – Short Trade Setup Sought
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Pending Short
- Support:1.6695 (“axis” line), 1.6636 (channel floor), 1.6559 (38.2% Fib ret.)
- Resistance:1.6827-54 (trend line, channel top), 1.6920 (May 21 high)
The British Pound may be preparing to renew its move lower against the US Dollar after re-testing rising trend line support-turned-resistance set from mid-November 2013 (now at 1.6854). This barrier is bolstered by a falling channel top at 1.6827. “Axis” line support is at 1.6695, followed by the channel bottom at 1.6636. Alternatively, a reversal above the trend line on a daily closing basis opens the door for a test of the May 21 high at 1.6920.
Positioning hints the path of least resistance favors the downside but an actionable trade setup is absent for the time being. We will remain on the sidelines until a clear-cut selling opportunity presents itself.
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.