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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5430, 1.5194, 1.4811
- Resistance: 1.5699, 1.5814, 1.5966
The British Pound paused to digest losses after producing the largest daily decline in three weeks against the US Dollar. Near-term support is at 1.5430, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 1.5194. Alternatively, a turn back above the May 21 high at 1.5699 opens the door for a challenge of the May 14 top at 1.5814.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
