GBP/USD Technical Analysis: Trying to Breach 3-Month Support
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- GBP/USD Technical Strategy: Flat
- Support: 1.5459, 1.5389, 1.5318
- Resistance: 1.5547, 1.5629, 1.5700
The British Pound has stalled at three-month rising trend support against the US Dollar having downward out of consolidation. A daily close below 1.5459 (trend line, 38.2% Fibonacci expansion) exposes the 50% level at 1.5389. Alternatively, a move above the 23.6% expansion at 1.5547 clears the way for a test of the 50% Fib retracement at 1.5629.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com