GBP/USD Technical Analysis: Pound Rebounds as Expected
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- GBP/USD Technical Strategy: Flat
- Support: 1.4597, 1.4463, 1.4247
- Resistance: 1.4798, 1.4847, 1.4990
The British Pound moved higher against the US Dollar as expected after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.4798, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing trend line support-turned-resistance at 1.4847. Alternatively, a turn below the 14.6% retracement at 1.4709 opens the door for a challenge of the 61.8% Fib expansion 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 an 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.