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GBP/USD Technical Analysis: Selloff Stalls Above 1.54 Figure

GBP/USD Technical Analysis: Selloff Stalls Above 1.54 Figure

Ilya Spivak, Head Strategist, APAC

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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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GBP/USD Technical Analysis: Selloff Stalls Above 1.54 Figure

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.

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