GBP/USD Technical Analysis: A Top in Place at 1.58?
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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 may be preparing to turn lower against the US Dollar after putting a Bearish Engulfing candlestick pattern. Near-term support is at 1.5664, the 61.8% Fibonacci expansion, with break above that on a daily closing basis exposing the 1.5551-4 area (February 26 high, 50% level). Alternatively, a move above the 76.4% Fib at 1.5801 opens the door for a challenge of the 100% expansion at 1.6021.
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