GBP/USD Technical Analysis: Support Now Below 1.52 Mark
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- GBP/USD Technical Strategy: Flat
- Support: 1.5180, 1.5094, 1.4950
- Resistance: 1.5322, 1.5471, 1.5551
The British Pound moved lower against the US Dollar as expected after putting in a Bearish Engulfing candlestick pattern. Near-term support is at 1.5180, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing falling channel top resistance-turned-support at 1.5081. Alternatively, a turn above the 14.6% level at 1.5322 opens the door for a challenge of rising channel floor support-turned-resistance at 1.5471.
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