GBP/USD Technical Analysis: Short Trade Nearing Target
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- GBP/USD Technical Strategy: Short at 1.4926
- Support: 1.4696, 1.4431, 1.4167
- Resistance: 1.5023, 1.5224, 1.5551
The British Pound accelerated downward having declined as expected against the US Dollar after forming a Bearish Engulfing candlestick pattern. Near-term support is 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 sold GBPUSD at 1.4926, 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 trade and move the stop-loss to the breakeven level 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.