GBP/USD Technical Analysis: Six-Week Uptrend Overturned?
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- GBP/USD Technical Strategy: Flat
- Support: 1.5430, 1.5194, 1.4811
- Resistance: 1.5551, 1.5699, 1.5814
The British Pound may have resumed its down trend against the US Dollar after prices broke trend line support set from mid-April. A daily close below the 14.6% Fibonacci expansion at 1.5430 exposes the 23.6% level at 1.5194. Alternatively, a move back above the February 26 high at 1.5551 clears the way for a test of the May 21 high at 1.5699.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.