We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
GBP/USD Technical Analysis: Pivotal Trend Line Under Fire

GBP/USD Technical Analysis: Pivotal Trend Line Under Fire

2014-07-30 21:40:00
Ilya Spivak, Sr. Currency Strategist
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6914, 1.6832, 1.6721
  • Resistance:1.6969, 1.7053, 1.7176

The British Pound continues to edge downward against the US Dollar having marked a top as expected after showing a Hanging Man candle with negative RSI divergence. Near-term support is at a rising trend line set from early February, now at 1.6914. A break below that on a daily closing basis exposesthe 38.2% Fibonacci retracement at 1.6832.Alternatively, a reversal above the 23.6% level at 1.6969opens the door for a test ofthe 14.6% Fib at 1.7053.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/USD Technical Analysis: Pivotal Trend Line Under Fire

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.

DISCLOSURES

News & Analysis at your fingertips.