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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.4850, 1.4768, 1.4634
- Resistance: 1.4984, 1.5093, 1.5201
The British Pound reversed sharply higher against the US Dollar, producing the largest daily advance since October 2009. A daily close above the 1.4950-84 area (January 23 low, 38.2% Fibonacci retracement) exposes the 50% level at 1.5093. Alternatively, a reversal below the 23.6% Fib at 1.4850 clears the way for a test of the 14.6% retracement at 1.4768.
We entered short GBPUSD at 1.4926 and subsequently booked profits on half of the position. The second half of the trade was stopped out at breakeven. From here, an actionable trade setup is absent and we will take to the sidelines until a compelling opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
