GBP/USD Technical Analysis: Drop Stalls After 1.50 Breach
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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 paused to consolidate losses against the US Dollar after dropping below the 1.50 threshold for the first time since mid-2013. A daily close below the 38.2% Fibonacci expansion at 1.4981 exposes the 50% level at 1.4892. Alternatively, a turn above the 23.6% Fib at 1.5091 opens the door for a challenge of the 14.6% expansion at 1.5159.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish 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.