Tuesday, May 27, 2014

GBP/USD Technical Analysis ? All Eyes on Critical Trend Line




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Talking Points:



  • GBP/USD Technical Strategy: Flat


  • Support:1.6816 (trend line), 1.6711 (38.2% Fib ret.)


  • Resistance:1.6920 (May 21 high), 1.6996 (May 6 high)


The British Pound has come under renewed selling pressure, with prices once again set to test rising trend support dating back to early February (now squarely at 1.6816). A break below this barrier exposes the 38.2% Fibonacci retracement at 1.6711. Near-term resistance is at 1.6920, the May 21 high, with a daily close above that clearing the way for a test of the May 6 peak at 1.6996.



Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we remain flat for now.



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GBP/USD Technical Analysis – All Eyes on Critical Trend Line


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





GBP/USD Technical Analysis ? All Eyes on Critical Trend Line

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