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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5459, 1.5389, 1.5318
- Resistance: 1.5547, 1.5629, 1.5700
The British Pound turned downward against the US Dollar, with prices now poised to challenge three-month rising trend support. Near-term support is at 1.5459 (trend line, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 50% level at 1.5389. Alternatively, a turn above the 23.6% expansion at 1.5547 opens the door for a challenge of the 50% Fib retracement at 1.5629.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com