GBP/USD Technical Analysis: Bottom Set Below 1.51 Figure?
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- GBP/USD Technical Strategy: Flat
- Support: 1.5034, 1.4802, 1.4570
- Resistance: 1.5177, 1.5293, 1.5409
The British Pound may have set a bottom against the US Dollar having completed a bullish Morning Star candlestick pattern. Near-term resistance is at 1.5177, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.5293. Alternatively, a reversal below the 76.4% Fib at 1.5034 clears the way for a test of the 100% expansion at 1.4802.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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.