GBP/USD Technical Analysis: Short Trade Nearing Target
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- GBP/USD Technical Strategy: Short at 1.6233
- Support: 1.6088, 1.5954, 1.5819
- Resistance: 1.6255, 1.6486, 1.6621
The US Dollar is making slow progress against the British Pound, with the UK unit sliding to the lowest level in nearly a month. Near-term support is at 1.6088, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.5954. Alternatively, a reversal back above the 23.6% Fib at 1.6255 clears the way for a challenge of the 1.6459-86 area marked by the March 24 low and the 38.2% Fib retracement.
We sold GBPUSD at 1.6233, initially targeting 1.6088. A stop-loss will be activated on a daily close above 1.6388. We will book half of the trade and move the stop-loss to breakeven once the first target is reached.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com