GBP/USD Technical Analysis: Channel Floor in the Spotlight
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- GBP/USD Technical Strategy: Flat
- Support: 1.5494, 1.5409, 1.5293
- Resistance: 1.5553, 1.5752, 1.5873
The British Pound is attempting to break downward out of a familiar consolidation range to expose a path toward the 1.54 figure. A daily close below channel support at 1.5494 exposes the 38.2% Fibonacci retracement at 1.5409. Alternatively, a turn back above the 23.6% Fib expansion at 1.5553 clears the way for a test of channel top resistance at 1.5752.
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.