Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
GBP/USD Technical Analysis:  Sterling Strength Prevails

GBP/USD Technical Analysis: Sterling Strength Prevails

James Stanley, Contributor

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • GBP/USD strength after an extended move last week.
  • Short positions could be attractive should resistance show in the 1.5500 zone.

British Pound strength has continued with aggressive price action against USD throughout the week after the sharp bounce off of the 23.6% Fibonacci retracement of the July 2014-April 2015 major move (shown in red-dashed lines on the chart). The strength in the pair over the past week has seen multiple long-term resistance levels yield to surging prices, including the 23.6% retracement of the long-term major move (shown as a green line on the chart, taking the Fib from the 2.1160 high to the financial collapse low at 1.3500), and the 50% retracement of the intermediate-term move (financial collapse low to the July 2014 high).

From here, resistance in the 1.5500 zone could prove attractive, as this offers both prior swing-low support as well as potential resistance from the 50% Fibonacci retracement of the most recent major move (indicated by dashed-gray lines). If 1.5500 yields, then potential resistance at 1.5567 and 1.5600 could become attractive; and if prices break above the 1.5750 psychological level, short stances should be abandoned as higher-highs would then look promising.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES