GBP/USD Technical Analysis: Rally Pauses Below 1.55 Mark

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Talking Points:

• 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 rising to the highest level in nearly two months. 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