GBP/USD Technical Analysis: Decline Below 1.61 Expected
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- GBP/USD Technical Strategy: Short at 1.6233
- Support: 1.6088, 1.5954, 1.5819
- Resistance: 1.6255, 1.6325, 1.6486
The British Pound took time to consolidate following three days of selling against the US Dollar that brought prices to a two-week low. A daily close below the 38.2% Fibonacci expansionat 1.6088 exposes the 50% level at 1.5954. Alternatively, a turn above the 23.6% Fib at 1.6255 opens the door for a test of falling trend line resistance at 1.6325.
We entered short GBPUSD at 1.6233, initially targeting 1.6088. A stop-loss is set to trigger on a daily close above 1.6388. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is met.
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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.