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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5489, 1.5337, 1.5189
- Resistance: 1.5631, 1.5814, 1.5967
The British Pound paused to consolidate losses after declining as expected against the US Dollar having produced a Bearish Engulfing candlestick pattern. A daily close below trend line support at 1.5489 exposes the 38.2% Fibonacci retracement at 1.5337. Alternatively, a move back above the 14.6% level at 1.5631 clears the way for a test of the May 14 high at 1.5814.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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
