GBP/USD Technical Analysis: Attempting to Launch Rebound
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- GBP/USD Technical Strategy: Flat
- Support: 1.5663, 1.5576, 1.5490
- Resistance: 1.5728, 1.5812, 1.5948
The British Pound is attempting to mount a recovery after sliding to a 14-month low against the US Dollar. A daily close above the 14.6% Fibonacci retracement at 1.5728 exposes the 23.6% level at 1.5812. Alternatively, a turn below the 38.2% Fib expansion at 1.5663 clears the way for a test of the 50% threshold at 1.5576.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish signal suggests taking up the short side is premature. 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