GBP/USD Technical Analysis: Bounce Capped at Range Top
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- GBP/USD Technical Strategy: Flat
- Support: 1.5547, 1.5459, 1.5389
- Resistance: 1.5629, 1.5700, 1.5788
The British Pound stalled at familiar range resistance below the 1.57 figure against the US Dollar once again. Near-term support is at 1.5547, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 1.5459. Alternatively, a push above the 50% Fib retracement at 1.5629 opens the door for a challenge of the 1.5666-1.5700 area (June 24 low, 61.8% expansion).
The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook 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.