GBP/USD Technical Analysis: Pound Retreats to Range Floor
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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 descended back to familiar range support against the US Dollar, unable to produce follow-through on yet another bullish reversal signal. Near-term support is at 1.5591, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 1.5447. Alternatively, a reversal above the 14.6% Fib retracement at 1.5823 opens the door for a challenge of the 23.6% threshold at 1.5967.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- 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.