Sunday, May 24, 2015

GBP/USD Technical Analysis: Six-Week Uptrend Overturned?




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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.



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GBP/USD Technical Analysis: Six-Week Uptrend Overturned?


Daily Chart – Created Using FXCM Marketscope



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





GBP/USD Technical Analysis: Six-Week Uptrend Overturned?

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