GBP/USD Technical Analysis: Buyers Retake 1.50 Figure
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- GBP/USD Technical Strategy: Flat
- Support: 1.4942, 1.4798, 1.4709
- Resistance: 1.5058, 1.5175, 1.5319
The British Pound resumed its expected recovery against the US Dollar, with buyers claiming a foothold above the 1.50 figure anew. Near-term resistance is at 1.5058, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 1.5175. Alternatively, a move below the 1.4942-78 area (38.2% Fib, horizontal pivot) opens the door for a challenge of the 23.6% retracement at 1.4798.
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