GBP/USD Technical Analysis – Prices declined as expected after putting in a Shooting Star candlestick below resistance at the top of a rising channel set from mid-March. The pair has now taken out the channel bottom to expose the 1.5195-1.5249 area, marked by the April 23 low and the 23.6% Fibonacci expansion. A further break beneath that aims for the 38.2% level at 1.5029. The channel bottom, now at 1.5370, has been recast as resistance. We continue to hold short.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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