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GBP/USD Technical Analysis: Downside Reversal Risk Seen

GBP/USD Technical Analysis: Downside Reversal Risk Seen

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.5664, 1.5551, 1.5444
  • Resistance: 1.5801, 1.6021, 1.6241

The British Pound continued to push higher in the wake of the UK general election but negative RSI divergence warns a pullback may be ahead. A daily close back below the 61.8% Fibonacci expansion at 1.5664 exposes the 1.5551-4 area (February 26 high, 50% level). Alternatively, a push above the 0.76.4% Fib at 1.5801 clears the way for a test of the 100% expansion at 1.6021

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.

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GBP/USD Technical Analysis: Downside Reversal Risk Seen

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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