GBP/USD Technical Analysis: Buyers Clear February Top
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- GBP/USD Technical Strategy: Flat
- Support: 1.5551, 1.5444, 1.5308
- Resistance: 1.5664, 1.5801, 1.6021
The British Pound advanced to the highest level in four months against the US Dollar in the wake of the UK general election outcome. Near-term resistance is at 1.5664, the 61.8% Fibonacci expansion, with break above that on a daily closing basis exposing the 76.4% level at 1.5801. Alternatively, a reversal below the 1.5551-4 area (February 26 high, 50% Fib) opens the door for a challenge of the 38.2% expansion at 1.5444.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.