GBP/USD Technical Analysis: Long Trade Remains in Play
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- GBP/USD Technical Strategy: Long at 1.5373
- Support: 1.5322, 1.5194, 1.4950
- Resistance: 1.5551, 1.5737, 1.5923
The British Pound continues to digest gains below the 1.55 figure having hit a two-month high against the US Dollar. A daily close above the 38.2% Fibonacci retracement at 1.5551 exposes the 50% level at 1.5737. Alternatively, a reversal below the 23.6% Fib at 1.5322 clears the way for a test of 1.5194, the intersection of channel top resistance-turned-support and a horizontal pivot.
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