GBP/USD Technical Analysis – Pound Soars to 1-Month High
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- GBP/USD Technical Strategy: Short at 1.6797
- Support:1.6897 (38.2% Fib exp.), 1.6818 (23.6% Fib exp.)
- Resistance:1.6960 (50% Fib exp.), 1.7023 (61.8% Fib exp.)
The British Pound soared against the US Dollar, jumping to a one-month high, after BOE Governor Carney said rate hikes arrive sooner than markets expect. The bulls now aim to challenge the 50% Fibonacci expansion at 1.6960, with a daily close above that exposing the 61.8% level at 1.7023. Alternatively, a reversal below the 38.2% Fib at 1.6897 would expose the 23.6% expansion at 1.6818.
We entered short GBPUSD at 1.6797. Thestop-loss on the position triggered on today’s daily close above 1.6845. The available trading range from here is narrowly too small to justify entering long from a risk/reward perspective and we will take to the sidelines, waiting for new opportunities to emerge.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com