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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 rose against the US Dollar as expected after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 1.5251, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.5385. Alternatively, a reversal below the 76.4% Fib expansion at 1.5034 clears the way for a test of the 100% threshold 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
