GBP/USD Technical Analysis: Bottom in Place Below 1.52?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Flat
- Support: 1.5170, 1.4990, 1.4848
- Resistance: 1.5348, 1.5459, 1.5638
The British Pound put in a Bullish Engulfing candlestick pattern, hinting a recovery against the US Dollar may be ahead. Near-term resistance is at 1.5349, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at 1.5459. Alternatively, a reversal above the June 1 low at 1.5170 opens the door for a challenge of a horizontal pivot at 1.4990.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.