GBP/USD Technical Analysis – Reversal Confirmation Pending
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- GBP/USD Technical Strategy: Flat
- Support:1.6960 (50% Fib exp.), 1.6897 (38.2% Fib exp.)
- Resistance:1.6996-1.7023 (May 6 high, 61.8% Fib exp.), 1.7102 (76.4% Fib exp.)
The British Pound may be on the verge of setting a double top against the US Dollar after prices produced a Shooting Star candlestick. The first layer of support is at 1.6960, the 50% Fibonacci expansion, with a break below that on a daily closing basis targeting the 38.2% level at 1.6897. Alternatively, a push through resistance in the 1.6996-1.7023 area, marked by the May 6 peak and the 61.8% Fib, clears the way for a challenge of the 76.4% expansion at 1.7102.
A Shooting Star candlestick points to indecision and does not amount to a definitive trade signal. With that in mind, we will wait for confirmation and remain flat until something actionable 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.