GBP/USD Technical Analysis: Eyeing Resistance Above 1.59
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- GBP/USD Technical Strategy: Flat
- Support: 1.5794, 1.5647, 1.5464
- Resistance: 1.5941, 1.6124, 1.6418
The British Pound moved higher against the US Dollar as expected after producing a Bullish Engulfing candlestick pattern. A daily close above the61.8% Fibonacci expansionat 1.5941 exposes the 76.4% level at 1.6124. Alternatively, a turn below the 50% Fib at 1.5794 opens the door for a challenge of the 38.2% expansion at 1.5647.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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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.