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GBP/USD Technical Analysis: Resistance Sub-1.50 Back in Play

GBP/USD Technical Analysis: Resistance Sub-1.50 Back in Play

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.4798, 1.4709, 1.4565
  • Resistance: 1.4990, 1.5058, 1.5175

The British Pound moved higher against the US Dollar as expected after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is in the 1.4942-90 area (38.2% Fibonacci retracement, horizontal pivot), with a break above that on a daily closing basis exposing the 50% level at 1.5058. Alternatively, a turn below the 23.6% Fib at 1.4798 opens the door for a challenge of the 14.6% retracement at 1.4709.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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.

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