GBP/USD Technical Analysis: Prices Retreat to Range Bottom
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- GBP/USD Technical Strategy: Flat
- Support: 1.5553, 1.5409, 1.5293
- Resistance: 1.5641, 1.5772, 1.5916
The British Pound slumped back to the bottom of its now-familiar range after issuing the largest daily decline in two months. A daily close below the 23.6% Fibonacci expansionat 1.5553 exposes the 38.2% level at 1.5409. Alternatively, a turn above the 14.6% expansion at 1.5641 clears the way for a test of the 23.6% Fib retracement at 1.5772.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
--- 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.