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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5170, 1.4990, 1.4857
- Resistance: 1.5376, 1.5464, 1.5647
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 falling trend line resistance at 1.5376 exposes the 23.6% Fibonacci expansion at 1.5464. Alternatively, a turn below the June 1 low at 1.5170 clears the way for a test of a horizontal pivot at 1.4990.
Positioning is inconclusive at this point. On one hand, a close above trend line resistance is needed to confirm upside reversal. On the other, the Engulfing pattern setup remains valid and may yet play out. With that in mind, we will remain flat for now until greater clarity emerges.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
