GBP/USD Technical Analysis – Prices advanced as expected after putting in a Bullish Engulfing candlestick pattern. A break above resistance at 1.5600, the 76.4% Fibonacci expansion, has exposed the underside of a rising channel set from mid-March, now at 1.5747. A push higher beyond that aims for the 100% level at 1.5783. The 1.5600 figure has been recast as near-term support, with a move back beneath that targeting the 61.8% Fib at 1.5487. A Hanging Man candlestick at resistance warns of a possible turn lower but confirmation is absent for now.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya’s e-mail distribution list, please CLICK HERE
New to FX? Watch this Video. For live market updates, visit the Real Time News Feed