GBP/USD Technical Analysis: Profits Booked on Short Trade
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- GBP/USD Technical Strategy: Flat
- Support: 1.6066, 1.5893, 1.5720
- Resistance: 1.6184, 1.6377, 1.6532
The British Pound broke higher as expected against the US Dollar completing a bullish falling wedge chart formation. Near-term resistance is now at 1.6184, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 1.6377. Alternatively, a reversal below the 1.6066-1.6108 area marked by wedge top resistance-turned-support and the 14.6% Fib opens the door for a test of 1.5893, the October 2013 low.
We sold GBPUSD at 1.6233and have since taken profit on half of our exposure. We will now exit the remainder of the trade and move to the sidelines, waiting for another trade opportunity to present itself in the days ahead.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com