GBP/USD Technical Analysis: Support Near 1.50 Holds Up
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- GBP/USD Technical Strategy: Flat
- Support: 1.4950, 1.4696, 1.4431
- Resistance: 1.5224, 1.5551, 1.5653
The British Pound moved lower against the US Dollar as expected after putting in a Bearish Engulfing candlestick pattern. Near-term support is at 1.4950, the January 23 low, with a break below that on a daily closing basis exposing the 38.2% Fibonacci expansion at 1.4696. Alternatively, a turn back above the 14.6% level at 1.5224 opens the door for a challenge of the February 26 high at 1.5551.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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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.