GBP/USD Technical Analysis: Reversal Upward Hinted Ahead
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- GBP/USD Technical Strategy: Flat
- Support: 1.5170, 1.4990, 1.4848
- Resistance: 1.5348, 1.5459, 1.5638
The British Pound may be readying to rise against the US Dollar following the formation of a Bullish Engulfing candlestick pattern. A daily close above the 14.6% Fibonacci expansion at 1.5349 exposes the 23.6% level at 1.5459. Alternatively, a turn below the June 1 low at 1.5170 clears the way for a test of a horizontal pivot at 1.4990.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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.