GBP/USD Technical Analysis: Support Near 1.47 Back in Play

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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 was rejected sharply lower after an unsuccessful attempt to recapture the 1.50 figure against the US Dollar. Near-term support is at 1.4706, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 1.4597. Alternatively, a turn above the 23.6% Fib retracement at 1.4850 opens the door for a challenge of the 1.4950-84 area (January 23 low, 38.2% retracement).

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com