GBP/USD Technical Analysis: Support Above 1.53 at Risk
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- GBP/USD Technical Strategy: Flat
- Support: 1.5322, 1.5180, 1.5117
- Resistance: 1.5440, 1.5551, 1.5601
The British Pound is edging lower as expected against the US Dollar after putting in a Bearish Engulfing candlestick pattern. Near-term support is at 1.5322, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 1.5180. Alternatively, a turn above channel floor support-turned-resistance at 1.5440 clears the way for a test of the 38.2% Fib retracement at 1.5551.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com