GBP/USD Technical Analysis: Candle Setup Hints at Bounce
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- GBP/USD Technical Strategy: Flat
- Support: 1.4597, 1.4463, 1.4247
- Resistance: 1.4709, 1.4798, 1.4835
The British Pound may be carving out a bottom against the US Dollar after prices put in a bullish Piercing Line candlestick pattern. A daily close above the 14.6% Fibonacci retracement at 1.4709 exposes the 23.6% level at 1.4798. Alternatively, a reversal below the 61.8% Fib expansion at 1.4597 clears the way for a test of the 76.4% threshold at 1.4463.
The dominant GBPUSD trend continues to favors the downside. With that in mind, we will treat any on-coming upswing as corrective and look for it to offer a selling opportunity. In the meantime, we will remain flat.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com