GBP/USD Technical Analysis: Candle Pattern Hints at Bounce
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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 be readying to turn higher against the US Dollar after producing a bullish Morning Star candlestick pattern. A daily close above the 61.8% Fibonacci expansionat 1.5177 exposes the 50% level at 1.5293. Alternatively, a turn below the 76.4% Fib at 1.5034 opens the door for a challenge of the 100% expansion at 1.4802.
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
--- 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.