GBP/USD Technical Analysis: Eyeing Channel Top Resistance
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- GBP/USD Technical Strategy: Flat
- Support: 1.5180, 1.4980, 1.4807
- Resistance: 1.5322, 1.5551, 1.5737
The British Pound stalled after correcting lower from the top of a falling channel encapsulating the down move against the US Dollar since mid-September. Near-term support is at 1.5180, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% Fib expansion at 1.4980. Alternatively, a move above the intersection of channel top resistance and the 23.6% retracement at 1.5322 opens the door for a challenge of the 38.2% threshold at 1.5551.
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