GBP/USD Technical Analysis: Worst Selloff Since 2008 Persists
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- GBP/USD Technical Strategy: Pending Short
- Support: 1.6533, 1.6470, 1.6407
- Resistance:1.6611, 1.6659, 1.6737
The British Pound continues to push downward against the US Dollar, with prices on pace to yield a seventh consecutive week of losses. A daily close below 38.2% Fibonacci expansion at 1.6533 exposes the 50% level at 1.6470. Alternatively, a reversal above the 23.6% Fib at 1.6611 opens the door for a test of the 14.6% expansion at 1.6659, a barrier bolstered by a falling trend line set from mid-July.
The Pound is on the verge of completing the worst losing streak since the onset of the global financial crisis in 2008. Curiously, this follows a surprisingly hawkish BOE meeting minutes published earlier in the week, hinting the move lower may be a function of inertia rather than fundamentals at this point. We will tactically opt against chasing after a short position here, waiting for an upswing to offer a more attractive setup.
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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.