GBP/USD Technical Analysis: Long Trade Setup Established
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- GBP/USD Technical Strategy: Pending Long at 1.5373
- Support: 1.5166, 1.4980, 1.4750
- Resistance: 1.5322, 1.5551, 1.5737
The British Pound looks set to continue higher against the US Dollar having taken out resistance at the top of a falling channel in play since mid-September. A daily close above the 38.2% Fibonacci retracement at 1.5551 exposes the 50% level at 1.5737. Alternatively, a reversal below the intersection of channel top resistance-turned-support and the 23.6% retracement at 1.5322 clears the way for a test of a horizontal pivot at 1.5194.
Risk/reward considerations argue against entering long at current levels and we will set an entry order to buy the pair at 1.5373. If triggered, the position will initially target 1.5551 and carry a stop-loss activated on a daily close below 1.5194.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com