GBP/USD Technical Analysis: Ready to Attempt Recovery?
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- GBP/USD Technical Strategy: Flat
- Support: 1.5591, 1.5447, 1.5213
- Resistance: 1.5823, 1.5967, 1.6201
The British Pound may be preparing to attempt a rebound against the US Dollar once again after prices produced a Bullish Engulfing candlestick pattern. Positive RSI divergence bolsters the case for an upside scenario. A daily close above the 14.6% Fibonacci retracementat 1.5823 exposes the 23.6% level at 1.5967. Alternatively, a turn below the 14.6% Fib expansion at 1.5591 clears the way for a test of the 23.6% threshold at 1.5447.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.