(MENAFN- DailyFX) DailyFX.com - r>
To receive Ilya's analysis directly via email please SIGN UP HERE
Talking Points:
-
GBP/USD Technical Strategy: Flat
-
Support: 1.6533 1.6470 1.6407
-
Resistance:1.6599-6612 1.6661 1.6762
The British Pound may be ready to launch a recovery against the US Dollar after prices put in a bullish Piercing Line candlestick pattern. Near-term resistance is in the 1.6599-1.6612 area marked by the 14.6% Fibonacci retracement and a falling trend line set from mid-July. A break above that on a daily closing basis exposes the 23.6% level at 1.6661. Alternatively a reversal below the 38.2% Fib expansion at 1.6533 clears the way for a challenge of the 50% threshold at 1.6470.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
-- Written by Ilya Spivak Currency Strategist for DailyFX.com
original source
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.