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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5337, 1.5189, 1.5042
- Resistance: 1.5498, 1.5699, 1.5814
The British Pound resumed its descent against the US Dollar after a brief pause. A daily close below the 38.2% Fibonacci retracement at 1.5337 exposes the 50% level at 1.5189. Alternatively, a move back above the April 29 high at 1.5498 clears the way for a test of the May 21 top at 1.5699.
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 that taking up the long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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