GBP/USD Technical Analysis: Eyeing Support Below 1.60
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- GBP/USD Technical Strategy: Flat
- Support: 1.5991, 1.5873. 1.5680
- Resistance: 1.6184, 1.6377, 1.6532
The British Pound is stumbling after bouncing as expected following the formation of a bullish Piercing Line candlestick pattern. 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 14.6% Fib expansion at 1.5991opens the door for a test of the 1.5873-93 area marked by the October 2013 low and the 23.6% threshold.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined signal pointing to bullish resumption suggests that taking up the long side is premature. With that in mind we will remain flat for now.
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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.