GBP/USD Technical Analysis – Rally Extends for Fifth Day
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- GBP/USD Technical Strategy: Flat
- Support:1.7136, 1.7093, 1.7039
- Resistance:1.7180, 1.7234, 1.7322
The British Pound moved higher for the fifth consecutive day against the US Dollar as prices edge toward the 1.72 figure. Near-term resistance is at 1.7180, the 61.8% Fibonacci expansion, with break above that on a daily closing basis exposing the 76.4% level at 1.7234. Alternatively, a turn back below the 50% Fib at 1.7136 opens the door for a test of the 38.2% expansion at 1.7093.
At 44 pips, the available range between near-term support and resistance looks too narrow to justify a trade on the long or short side from a risk/reward perspective (given a 20-day ATR reading of 66 pips). With that in mind, we will remain flat for now and wait for a more actionable setup to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com