GBP/USD Technical Analysis: Trying to Reverse Down Trend
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- GBP/USD Technical Strategy: Flat
- Support: 1.6255, 1.6088, 1.5654
- Resistance:1.6366, 1.6486, 1.6621
The British Pound rebounded against the US Dollar as expected, with prices attempting to break above resistance capping the upside since mid-July. A daily close above falling trend line resistance at 1.6366 exposes the 1.6459-86 area marked by the March 24 low and the 38.2% Fibonacci retracement. Alternatively, a turn below the 23.6% Fib expansion at 1.6255 opens the door for a test of the 38.2% threshold at 1.6088.
Risk/reward considerations argue against entering longas prices hover just at resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.