GBP/USD Technical Analysis: Pound Attempts Recovery
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- 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.
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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.