To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5430, 1.5194, 1.4811
- Resistance: 1.5551, 1.5699, 1.5814
The British Pound may have resumed its down trend against the US Dollar after prices broke trend line support set from mid-April. A daily close below the 14.6% Fibonacci expansion at 1.5430 exposes the 23.6% level at 1.5194. Alternatively, a move back above the February 26 high at 1.5551 clears the way for a test of the May 21 high 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
