GBP/USD Technical Analysis: Range Floor Under Pressure
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- GBP/USD Technical Strategy: Flat
- Support: 1.4706, 1.4597, 1.4463
- Resistance: 1.4814, 1.4990, 1.5160
The British Pound may be resuming its down trend against the US Dollar after breaking below rising trend support. A daily close below the 50% Fibonacci expansion at 1.4706 exposes the 61.8% level at 1.4597. Alternatively, a reversal above trend line support-turned-resistance at 1.4814 clears the way for a test of range top resistance at 1.4990.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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