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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.6593 (23.6% Fib ret.), 1.6452 (38.2% Fib ret.)
- Resistance: 1.6667-80 (Jan 24 high, 14.6% Fib ret.), 1.6822 (Feb 17 high)
The British Pound is attempting to launch a recovery against the US Dollar. Prices are testing above support-turned-resistance in the 1.6667-80 area, defined by the January 24 high and the 14.6% Fibonacci retracement, with a close above this barrier targeting the February 17 highat 1.6822. Alternatively, a push through the 23.6% level at 1.6593 aims for the 38.2% Fib at 1.6452.
Clear-cut confirmation of an upside reversal is incomplete at this point. On the other hand, a short position with prices trading above near-term resistance seems like a dangerous proposition. We will wait on the sidelines for greater clarity to emerge.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com