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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.6533, 1.6470, 1.6407
- Resistance:1.6613, 1.6661, 1.6762
The British Pound may be ready to launch a recovery against the US Dollar after prices put in a bullish Piercing Line candlestick pattern. A daily close above falling trend line resistance at 1.6613 exposes the 23.6% level at 1.6661. Alternatively, a turn below the 38.2% Fib expansion at 1.6533 opens the door for a test of the 50% barrier at 1.6470.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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