GBP/USD Technical Analysis: Digesting After Upside Breakout
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- GBP/USD Technical Strategy: Long at 1.5373
- Support: 1.5322, 1.5194, 1.4980
- Resistance: 1.5551, 1.5737, 1.5923
The British Pound is digesting gains against the US Dollar after overturning the down trend in play since mid-September. Near-term resistance is at 1.5551, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 1.5737. Alternatively, a turn below the 23.6% Fib at 1.5322 opens the door for a challenge of a horizontal pivot at 1.5194.
We bought GBPUSD at 1.5373, initially aiming for 1.5551. A stop-loss will be activated on a daily close below 1.5194. We will take profit on half of the position and move the stop to breakeven once the first target is reached.
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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.