GBP/USD Technical Analysis: Oscillating in Familiar Territory

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Talking Points:

• GBP/USD Technical Strategy: Flat
• Support: 1.4706, 1.4597, 1.4463
• Resistance: 1.4984, 1.5093, 1.5201

The British Pound remains locked in a choppy consolidation range below the 1.50 figure against the US Dollar. Near-term resistance is in the 1.4950-84 area (January 23 low, 38.2% Fibonacci retracement), with a break above that on a daily closing basis exposing the 50% level at 1.5093. Alternatively, a reversal below the 50% Fib expansionat 1.4706opens the door for a challenge of the 61.8% threshold at 1.4597.

Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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