GBP/USD Technical Analysis: Short Entry Sought on Bounce
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- GBP/USD Technical Strategy: Pending Short
- Support: 1.6818-22, 1.6703, 1.6587
- Resistance:1.6929, 1.6960, 1.7048
The British Pound fell as expected against the US Dollar after putting in a Hanging Man candlestick with negative RSI divergence. A bullish Piercing Line setup above support in the 1.6818-22 area, marked by the February 17 high and the 38.2% Fibonacci retracement, now hints a correction upward is ahead. A daily close above trend line support-turned-resistance at 1.6929 exposes the 23.6% level at 1.6960. Alternatively, a reversal below support clears the way for a challenge of the 50% Fib at 1.6703.
We see the medium-term trend bias as bearish considering last week’s break of rising trend support set from February. With that in mind, we will look at any bounce from here as an opportunity to get short at a more attractive level rather than a trade-able rally.
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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.