GBP/USD Technical Analysis: Pound Sinks to 5-Year Low
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- GBP/USD Technical Strategy: Flat
- Support: 1.4597, 1.4463, 1.4247
- Resistance: 1.4706, 1.4826, 1.4990
The British Pound continued to sink against the US Dollar, with prices sliding to the weakest level in close to five years. Near-term support is at 1.4597, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 1.4463. Alternatively, a turn above the 50% Fib at 1.4706 opens the door for a challenge of trend line support-turned-resistance at 1.4826.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.