To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- GBP/USD Technical Strategy: Flat
- Support: 1.5498, 1.5309, 1.4926
- Resistance: 1.5589, 1.5659, 1.5814
The British Pound declined against the US Dollar as expected after prices produced a bearish Evening Star candlestick pattern. Near-term support is in the 1.5498-1.5545 area (April 27 high, 14.6% Fibonacci expansion), with a break below that on a daily closing basis exposing the 23.6% level at 1.5309. Alternatively, a turn above trend line support-turned-resistance at 1.5589 clears the way for a test of a horizontal pivot at 1.5659.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
— Written by Ilya Spivak, Currency Strategist for DailyFX.com