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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.6215, 1.6113, 1.5950
- Resistance:1.6296, 1.6378, 1.6459
The British Pound is sinking yet again, plunging to the weakest level against the US Dollar since November 2013. A daily close below the 61.8% Fibonacci expansion at 1.6215 exposes the 76.4% level at 1.6113. Alternatively, a reversal above the 50% Fib at 1.6296 opens the door for a test of the 38.2% expansion at 1.6378.
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 suggests taking up the long side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
