GBP/USD Technical Analysis: April High Under Pressure
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- GBP/USD Technical Strategy: Flat
- Support: 1.5308, 1.5224, 1.5088
- Resistance: 1.5444, 1.5554, 1.5664
The British Pound has moved to challenge April’s highs against the US Dollar, buoyed by early results from the UK general election. A daily close above the 38.2% Fibonacci expansion at 1.5444 exposes the 1.5551-54 area (50% level, February 26 high). Alternatively, a turn below the 23.6% Fib at 1.5308 clears the way for a test of the 14.6% Fib at 1.5224.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com