To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- GBP/USD Technical Strategy: Pending Short
- Support: 1.6533, 1.6470, 1.6407
- Resistance:1.6611, 1.6659, 1.6737
The British Pound remains under heavy selling pressure, with prices touching the lowest level in five monthsagainst the US Dollar. A daily close below 38.2% Fibonacci expansion at 1.6533 exposes the 50% level at 1.6470. Alternatively, a reversal above the 23.6% Fib at 1.6611 opens the door for a test of the 14.6% expansion at 1.6659, a barrier bolstered by a falling trend line set from mid-July.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
