GBP/USD Technical Analysis – Pound Drops Sub-1.70 Anew
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- GBP/USD Technical Strategy: Flat
- Support:1.6961-96, 1.6859, 1.6760
- Resistance:1.7062, 1.7128, 1.7263
The British Pound pulled back against the US Dollar, with prices again losing their grip on the 1.70 figure. The pair is retesting support in the 1.6961-96 area, marked by the 23.6% Fibonacci expansion and the May 6 high. A break below that on a daily closing basis targets the 14.6% level at 1.6859. Alternatively, a reversal above the June 19 high at 1.7062 clears the way for a challenge of the 38.2% Fib 1.7128.
We decided against a long position yesterday. That decision has served us well after BOE rhetoric took a dovish turn, as we suspected. While entering short is premature for now, the case for upside continuation has been somewhat eroded. With that in mind, we will continue to watch developments from the sidelines.
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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.