GBP/USD Technical Analysis: Eyeing Head and Shoulders Setup
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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 struggling to make good on a bottoming chart setup after prices bounced as expected having put in a 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 14.6% Fib expansion at 1.5991 clears the way for a challenge of the 1.5873-93 area marked by the October 2013 low and the 23.6% threshold.
Prices may be carving out a Head and Shoulders bottom chart formation. Confirmation is needed on a daily close above 1.6184 to make for a trade-able setup however. With that in mind, we will remain on the sidelines for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com