GBP/USD Technical Analysis: Support Above 1.53 in Focus
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- GBP/USD Technical Strategy: Flat
- Support: 1.5337, 1.5189, 1.5042
- Resistance: 1.5498, 1.5699, 1.5814
The British Pound declined for a fourth consecutive day against the US Dollar, dropping to the lowest level in three weeks. Near-term support is at 1.5337, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 1.5189. Alternatively, a reversal above the April 29 high at 1.5498 opens the door for a challenge of the May 21 top at 1.5699.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.