GBP/USD Technical Analysis: Pound Sinks to 14-Month Low
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- GBP/USD Technical Strategy: Flat
- Support: 1.5680, 1.5525, 1.5369
- Resistance: 1.5893, 1.5991, 1.6183
The British Pound overturned signs of an emerging bottom seen over the past three weeks, plunging to a 14-month low against the US Dollar. A daily close below the 1.5680-5720 area (38.2% Fibonacci expansion, June 2013 bottom) exposes the 50% level at 1.5525. Alternatively, a reversal above the 1.5873-93 zone (October 2013 low, 23.6% Fib) clears the way for a test of the 14.6% expansion at 1.5991
Entering short is very tempting from a technical perspective. However, we will tactically opt to stand aside considering the looming event risk represented by the US Employment report, which may drive significant US Dollar volatility and derail technical considerations.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com