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GBP/USD Technical Analysis: Interim Support Met Below 1.70

GBP/USD Technical Analysis: Interim Support Met Below 1.70

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6969, 1.6901, 1.6832
  • Resistance:1.7053, 1.7176, 1.7319

The British Pound is digesting losses against the US Dollar having turned lower as expected after showing a Hanging Man candlestick with negative RSI divergence. A daily close below 1.6969, the 23.6% Fibonacci retracement, exposes a rising trend line set from early February, now at 1.6901. Alternatively, a bounce above resistance at 1.7053, the 14.6% Fib, clears the way for a challenge of the July 2 top at 1.7176.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal argues against taking up the long side. We will remain flat for now.

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GBP/USD Technical Analysis: Interim Support Met Below 1.70

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.

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