GBP/USD Technical Analysis: All Eyes on Channel Resistance
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- GBP/USD Technical Strategy: Flat
- Support: 1.5171, 1.4980, 1.4750
- Resistance: 1.5322, 1.5551, 1.5737
The British Pound is consolidating after retreating from resistance at the top of a falling channel guiding the down trend against the US Dollar since mid-September. A daily close below trend line resistance-turned-support at 1.5171 exposes the 23.6% Fib expansion at 1.4980. Alternatively, a push 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.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com