GBP/USD Technical Analysis: Looking to Confirm Reversal
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- GBP/USD Technical Strategy: Flat
- Support: 1.5533, 1.5380, 1.5285
- Resistance: 1.5725, 1.5809, 1.5945
The British Pound may be readying to begin a bounce against the US Dollar after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 1.5725, the intersection of a falling trend line and the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.5809. Alternatively, a reversal below the 1.5533-87 area marked by the November 19 low and the 100% Fib expansion opens the door for a challenge of the 123.6% threshold at 1.5380.
Entering long seems premature until prices confirm reversal with a break of trend line resistance. With that in mind, we will stand aside for now until a more actionable trading opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com