News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/USD Technical Analysis: Down Trend Overturned?

GBP/USD Technical Analysis: Down Trend Overturned?

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6320, 1.6217, 1.6051
  • Resistance:1.6395, 1.6486, 1.6621

The British Pound rebounded against the US Dollar as expected, with prices threatening to overturn the down trend set from mid-July. Near-term falling trend line resistance is at 1.6395, with a break above that on a daily closing basis exposing the 1.6459-86 area marked by the March 24 low and the 38.2% Fibonacci retracement. Alternatively, a reversal below 23.6% level at 1.6320 clears the way for a challenge of the 14.6% Fib at 1.6217.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/USD Technical Analysis: Down Trend Overturned?

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.

DISCLOSURES