GBP/USD Technical Analysis: Stuck at Range Top Resistance

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• GBP/USD Technical Strategy: Flat
• Support: 1.5574, 1.5486, 1.5387
• Resistance: 1.5700, 1.5788, 1.5929

The British Pound continues to stall at range top resistance below the 157 figure against the US Dollar. Near-term support is at 1.5574, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing 1.5486 (trend line, 38.2% level). Alternatively, a push above the 1.5675-1.5700 area (July 15 high, 61.8% Fib retracement) opens the door for a challenge of the 76.4% threshold at 1.5788.

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