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Talking Points:
- GBP/USD Technical Strategy: Short at 1.4926
- Support: 1.4950, 1.4696, 1.4431
- Resistance: 1.5023, 1.5224, 1.5551
The British Pound renewed its downward push against the US Dollar having reversed downward as expected after showing a Bearish Engulfing candlestick pattern. Near-term support is now at 1.4696, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.4431. Alternatively, a turn above the 1.4950-1.5023 area (January 23 low, 23.6% Fib) opens the door for a challenge of the 14.6% expansion at 1.5224.
We will now enter short, initially targeting 1.4696. A stop-loss will be activated on a daily close above 1.5136. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
