GBP/USD Technical Analysis: All Eyes on 1.58 Figure
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- GBP/USD Technical Strategy: Flat
- Support: 1.5664, 1.5551, 1.5444
- Resistance: 1.5801, 1.6021, 1.6241
The British Pound advanced for a fifth consecutive day, with all eyes now on the 1.58 figure against the US Dollar. A daily close above the 76.4% Fibonacci expansionat 1.5801 exposes the 100% level at 1.6021. Alternatively, a turn below the 61.8% Fib at 1.5664 clears the way for a test of the 1.5551-4 area (February 26 high, 50% expansion).
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