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Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5549, 1.5459, 1.5349
- Resistance: 1.5639, 1.5750, 1.5818
The British Pound declined against the US Dollar as expected after prices produced a bearish Evening Star candlestick pattern. Near-term support is at 1.5549, the50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 1.5460. Alternatively, a reversal above the 38.2% Fib at 1.5639 clears the way for a test of the 23.6% retracement at 1.5750.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com