GBP/USD Technical Analysis – Buyers Expose 1.71 Figure

By DailyFx | June 19, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support:1.6996, 1.6960, 1.6897
  • Resistance:1.7102, 1.7228, 1.7355

The British Pound pushed to the highest level in nearly five years against the US Dollar, overcoming the 1.70 figure. Near-term resistance is now at 1.7102, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 100% level at 1.7228. Alternatively, a reversal below support in the 1.6996-1.7023 area – marked by the 61.8% Fib and the May 6 high – targets the 50% level at 1.6960.

Entering long is a tempting proposition but we will tactically opt to stand aside. The correlation between GBPUSD and the UK-US 2-year bond yield spread is 0.88 (20-day percent change studies), putting monetary policy bets in the driver’s seat. The week ahead is thin on UK news-flow needed to drive further Pound gains while the US docket offers plenty of opportunities for markets to rethink the post-FOMC reaction. With that in mind, we remain flat.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

GBP/USD Technical Analysis – Buyers Expose 1.71 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. Trading Video: Gauging the Dominant Dollar, Yen and S&P 500 Trends
    Forex News

    Trading Video: Gauging the Dominant Dollar, Yen and S&P 500 Trends

  2. Strategy Video: The Process of Trend Reversals
    Forex News

    Strategy Video: The Process of Trend Reversals

  3. Session Recap: JPY retreats as risk appetite improves
    Forex News

    Session Recap: JPY retreats as risk appetite improves

  4. Russia Announces FX Repo: USD/RUB Finds Support in Bullish Channel
    Forex News

    Russia Announces FX Repo: USD/RUB Finds Support in Bullish Channel

  5. NZDUSD Next Leg Lower Around the Corner?
    Forex News

    NZDUSD Next Leg Lower Around the Corner?

Trading Center