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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5540, 1.5447, 1.5213
- Resistance: 1.5731, 1.5825, 1.5930
The British Pound may be carving out a bottom against the US Dollar marked by the appearance of a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.5731, a falling trend line set from mid-July, with a break above that on a daily closing basis exposing the November 27 high at 1.5825. Alternatively, a turn below the December 8 low at 1.5540 opens the door for a challenge of the 23.6% Fibonacci expansion at 1.5447.
It seems premature to enter long absent confirmation of reversal on a break of trend line resistance. With that in mind, we will remain on the sidelines for now until an actionable opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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