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GBP/USD Technical Analysis: Decline Below 1.61 Expected

GBP/USD Technical Analysis: Decline Below 1.61 Expected

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • 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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GBP/USD Technical Analysis: Decline Below 1.61 Expected

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.

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