GBP/USD Technical Analysis: H&S Bottom Still a Possibility
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- GBP/USD Technical Strategy: Flat
- Support: 1.5873. 1.5680, 1.5525
- Resistance: 1.6184, 1.6377, 1.6532
The British Pound is struggling to make good on a bottoming chart setup marked by the formation 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 1.5873-93 area marked by the October 2013 low and the 23.6% Fib expansion clears the way for a challenge of the 1.5680-1.5720 zone (38.2% expansion, June 2013 bottom).
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.