GBP/USD Technical Analysis: Attempting to Build Upward
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- GBP/USD Technical Strategy: Flat
- Support: 1.5170, 1.4990, 1.4851
- Resistance: 1.5369, 1.5464, 1.5647
The British Pound is attempting to edge higher against the US Dollar having put in a Bullish Engulfing candlestick pattern. Near-term falling trend line resistance is at 1.5369, with a break above that on a daily closing basis exposing the 23.6% Fibonacci expansion at 1.5464. Alternatively, a reversalback below the June 1 low at 1.5170 opens the door for a challenge of horizontal pivot support 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.
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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.