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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5034, 1.4802, 1.4570
- Resistance: 1.5251, 1.5385, 1.5603
The British Pound advanced against the US Dollar as expected after producing a bullish Morning Star candlestick pattern. A daily close above the 14.6% Fibonacci retracement at 1.5251 exposes the 23.6% level at 1.5385. Alternatively, a turn below the 76.4% Fib expansion at 1.5034 opens the door for a challenge of the 100% threshold 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
