Monday, June 2, 2014

GBP/USD Technical Analysis ? Short Trade Setup Sought




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Talking Points:



  • GBP/USD Technical Strategy: Flat


  • Support:1.6694 (“axis” line), 1.6559 (38.2% Fib ret.)


  • Resistance:1.6834 (trend line), 1.6920 (May 21 high)


The British Pound may have marked a pivotal reversal against the US Dollar after prices cleared rising trend support set from mid-November 2013. The pair is testing “axis” line support at 1.6694, with a daily close below that targeting the 38.2% Fibonacci retracement at 1.6559. Alternatively, a turn back above trend line support-turned-resistance – now at 1.6834 – clears the way for a challenge of the May 21 high at 1.6920.



An actionable short trade setup is absent for the time being, with prices too close to support to justify entering the trade from a risk/reward perspective. We will continue to stand aside, looking for a larger corrective bounce to yield an opening.



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GBP/USD Technical Analysis – Short Trade Setup Sought


Daily Chart – Created Using FXCM Marketscope 2.0



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





GBP/USD Technical Analysis ? Short Trade Setup Sought

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