GBP/USD Technical Analysis: Pound Eyes Resistance Sub-1.50
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- GBP/USD Technical Strategy: Flat
- Support: 1.4825, 1.4706, 1.4597
- Resistance: 1.4984, 1.5093, 1.5201
The British Pound continues to consolidate near the middle of the range containing price action against the US Dollar for the last three weeks. A daily close abovethe 1.4950-84 area (January 23 low, 38.2% Fibonacci retracement) exposes the 50% level at 1.5093. Alternatively, a reversal back below pivot resistance-turned-support at 1.4825 clears the way for a test of the 50% Fib expansion at 1.4706.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com