GBP/USD Technical Analysis: Passing on Long Trade Setup
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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 pushed upward against the US Dollar as expected after the appearance of a bullish Piercing Line candlestick pattern. A daily close above the 23.6% Fibonacci retracementat 1.6184 exposes the 38.2% level at 1.6377. Alternatively, a turn below the intersection of rising wedge top resistance-turned-support and the 14.6% Fib at 1.6066 clears the way for a challenge of 1.5893, the October 2013 low.
While a long position is tempting from a purely we will tactically opt to stand aside. The Pound faces the release of minutes from this month’s BOE policy meeting, injecting a degree of event risk into the equation. With that in mind, we will wait to see how positioning evolves in the hours ahead before committing to a trade.
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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.