GBP/USD Technical Analysis: Pound Gains Most in 3 Months
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- GBP/USD Technical Strategy: Flat
- Support: 1.6051, 1.5950, 1.5786
- Resistance:1.6217, 1.6320, 1.6459
The British Pound rebounded against the US Dollar as expected following supportive commentary from BOE policymakers. Near-term resistance is at 1.6217, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.6320. Alternatively, a turn below the September 10 low at 1.6051 clears the way for a challenge of the 100% Fib expansion at 1.5950.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.