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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 selling pressure has gathered steam anew, denting upswing possibilities hinted by the formation a Hammer candlestick. A daily close below 38.2% Fibonacci expansion at 1.6533 exposes the 50% level at 1.6470. Alternatively, a reversal above the intersection of the 23.6% Fib and a falling trend line set from mid-July at 1.6611 opens the door for a test of the 14.6% expansion at 1.6659.
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.
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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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