GBP/USD Technical Analysis – Short Position Now in Play
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- GBP/USD Technical Strategy: Short at 1.6797
- Support:1.6685 (“axis” line), 1.6623 (channel floor), 1.6559 (38.2% Fib ret.)
- Resistance:1.6813 (channel top), 1.6845 (Jun 6 high), 1.6862 (trend line)
The British Pound edged lower against the US Dollar following a retest of rising trend line support-turned-resistance set from mid-November 2013. Downward-sloping “axis” line support is now at 1.6685, with a break below that targeting the bottom of a falling channel at 1.6623. Alternatively, a daily close above the channel top – now at 1.6813 – targets the June 6 high at 1.6845. This is followed by the trend line at 1.6866.
A corrective pull-up has improved risk/reward parameters and we will attempt to enter short, initially targeting 1.6707.A stop-loss is set to trigger on a daily close above 1.6845. We will book profit on half of the position at the first objective and trail the stop-loss to breakeven.
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.