GBP/USD Technical Analysis: Resistance Above 1.56 Targeted
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- GBP/USD Technical Strategy: Flat
- Support: 1.5464, 1.5352, 1.5170
- Resistance: 1.5647, 1.5794, 1.5941
The British Pound moved higher against the US Dollar as expected after producing a Bullish Engulfing candlestick pattern. A daily close above the38.2% Fibonacci expansionat 1.5647 exposes the 50% level at 1.5794. Alternatively, a turn below the 23.6% Fib at 1.5464 opens the door for a challenge of the 14.6% expansion at 1.5352.
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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--- 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.