GBP/USD Technical Analysis: Support Now Below 1.50
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- GBP/USD Technical Strategy: Flat
- Support: 1.4981, 1.4892, 1.4804
- Resistance: 1.5091, 1.5159, 1.5268
The British Pound renewed its push downward against the US Dollar, issuing the largest daily decline in three weeks. Near-term support is at 1.4981, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.4892. Alternatively, a reversal above the 23.6% Fib at 1.5091 clears the way for a test of the 14.6% expansion at 1.5159.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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.