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GBP/USD Technical Analysis: Pound Sinks to 11-Month Low

GBP/USD Technical Analysis: Pound Sinks to 11-Month Low

2014-10-06 03:34:00
Ilya Spivak, Head Strategist, APAC
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Talking Points:

  • GBP/USD Technical Strategy: Short at 1.6233
  • Support: 1.5954, 1.5819, 1.5653
  • Resistance: 1.6088, 1.6255, 1.6486

The British Pound accelerated downward against the US Dollar, tumbling to the weakest level in 11 months. A daily close below the 50% Fibonacci expansion at 1.5954 exposes the 61.8% level at 1.5819. Alternatively, a reversal back above the 38.2% Fib at 1.6088 opens the door for a test of the 1.6255, the intersection of the 23.6% expansion and a falling trend line set from mid-July.

We entered short GBPUSD at 1.6233 and have since taken profit on half of our exposure. The rest remains open to capture any further downside momentum with a stop-loss the breakeven level (1.6233).

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

GBP/USD Technical Analysis: Pound Sinks to 11-Month Low

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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