GBP/USD Technical Analysis: Rally Extends for Fifth Session
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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 advanced against the US Dollar as expected after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 1.5941, the61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 76.4% level at 1.6124. Alternatively, a reversal below the 50% Fib at 1.5794 clears the way for a test of the 38.2% expansion at 1.5647.
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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--- 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.