GBP/USD Technical Analysis: Rejected at 1.57 Once Again
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- GBP/USD Technical Strategy: Flat
- Support: 1.5546, 1.5458, 1.5387
- Resistance: 1.5700, 1.5788, 1.5929
The British Pound recoiled from range resistance yet again, with a Bearish Engulfing candlestick pattern warning of deeper losses ahead. A daily close below the 23.6% Fibonacci expansion at 1.5546 exposes the 1.5458-81 area (trend line, 38.2% level). Alternatively, a move above the 1.5675-1.5700 zone (July 15 high, 61.8% Fib retracement) clears the way for a test of the 76.4% threshold at 1.5788.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents 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.