GBP/USD Technical Analysis: Struggling to Confirm Bottom
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- GBP/USD Technical Strategy: Flat
- Support: 1.5873. 1.5680, 1.5525
- Resistance: 1.5991, 1.6184, 1.6377
The British Pound is struggling to build upward after bottoming against the US Dollar expected following the appearance of a Piercing Line candlestick pattern. Near-term resistance is now at 1.5991, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% Fib retracement at 1.6184. Alternatively, a reversal below the 1.5873-93 area (October 2013 low, 23.6% expansion) opens the door for a test of the 1.5680-5720 zone (38.2% expansion, June 2013 bottom).
A bullish Head and Shoulders bottom chart formation may be in the works but confirmation is needed on a daily close above 1.6184 (the would-be pattern’s neckline) to make for an actionable setup. As such, we will continue to stand aside 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