GBP/USD Technical Analysis: Support Below 1.52 Pressured
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- GBP/USD Technical Strategy: Flat
- Support: 1.5189, 1.4990, 1.4860
- Resistance: 1.5337, 1.5498, 1.5699
The British Pound continued to press lower against the US Dollar, making for the lowest losing streak in over 10 months. A daily close below the 50% Fibonacci retracement at 1.5189 exposes the 1.4990-1.5042 area (horizontal pivot, 61.8% level). Alternatively, a turn back above the 38.2% Fib at 1.5337 clears the way for a test of the April 29 high at 1.5498.
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.