GBP/USD Technical Analysis: Pound Attempts Recovery
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Flat
- Support: 1.5471, 1.5417, 1.5329
- Resistance: 1.5558, 1.5629, 1.5700
The British Pound corrected cautiously higher after declining to the lowest level in two weeks against the US Dollar. Near-term support is at 1.5471, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 14.6% level at 1.5417. Alternatively, a turn above the 38.2% Fib at 1.5558 clears the way for a test of the 50% retracement at 1.5629.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com