GBP/USD Technical Analysis: Rebound Extends for 2nd Day
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- GBP/USD Technical Strategy: Flat
- Support: 1.5121, 1.4976, 1.4888
- Resistance: 1.5265, 1.5354, 1.5498
The British Pound may be resuming its recovery against the US Dollar after finding support below the 1.52 figure. Near-term resistance is at 1.5265, the 23.6% Fibonacci expansion, with break above that on a daily closing basis exposing the 14.6% level at 1.5354. Alternatively, a reversal below the 38.2% Fib at 1.5121 opens the door for a challenge of the 1.4976-1.5004 area (50% expansion, range top).
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