GBP/USD Technical Analysis: Opting Against Short Position
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- GBP/USD Technical Strategy: Pending Short
- Support: 1.6533, 1.6470, 1.6407
- Resistance:1.6611, 1.6659, 1.6702
The British Pound renewed its push downward against the US Dollar, sinking to the lowest level in four months. Near-term support is at 1.6533, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.6470. Alternatively, a turn above the 23.6% Fib at 1.6611 clears the way for a challenge of the 14.6% expansion at 1.6659.
Sterling is working on its seventh consecutive weekly decline, the first such losing streak since plunge at the onset of the global financial crisis in 2008. This comes on the heels of a surprisingly hawkish set of BOE meeting minutes, warning that momentum may be overshooting underlying fundamentals. With that in mind, we will tactically opt not to chase prices lower here, waiting for a correction higher to establish a short position.
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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.