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Talking Points:
- GBP/USD Technical Strategy: Short at 1.6233
- Support: 1.6043, 1.5931, 1.5749
- Resistance: 1.6237, 1.6459, 1.6566
The British Pound rose as expected against the US Dollar after putting in a bullish Piercing Line candlestick pattern. A daily close above the intersection of a falling trend line and the 23.6%Fibonacci retracement at 1.6237 exposes the 1.6419-59 area marked by the March 24 low and the 38.2% level. Alternatively, a turn below the 14.6% Fib expansion at 1.6043 opens the door for a test of the 23.6% threshold at 1.5931.
We entered short GBPUSD at 1.6233and have since taken profit on half of our exposure. The rest remains open to capture any further downside momentum with a stop-loss the breakeven level (1.6233).
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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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