GBP/USD Technical Analysis: Pound Drops to Weekly Low
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- GBP/USD Technical Strategy: Flat
- Support: 1.5639, 1.5549, 1.5759
- Resistance: 1.5750, 1.5818, 1.5929
The British Pound declined against the US Dollar as expected after prices produced a bearish Evening Star candlestick pattern. Near-term support is at 1.5639, the38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 1.5549. Alternatively, a reversal above the 23.6% Fib at 1.5750 clears the way for a test of the 14.6% retracement at 1.5818.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.