GBP/USD Technical Analysis: Monthly Resistance Broken
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- GBP/USD Technical Strategy: Flat
- Support: 1.5342, 1.5170, 1.4990
- Resistance: 1.5464, 1.5647, 1.5794
The British Pound moved higher against the US Dollar as expected after producing a Bullish Engulfing candlestick pattern. A daily close above the 23.6% Fibonacci expansion at 1.5464 exposes the 38.2% level at 1.5647. Alternatively, a turnbelow trend line resistance-turned-support at 1.5342 the opens the door for a challenge of June 1 low at 1.5170.
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.