DailyFX.com -

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

Talking Points:

  • GBP/USD Technical Strategy: Short at 1.6797
  • Support:1.6685 (“axis” line), 1.6623 (channel floor), 1.6559 (38.2% Fib ret.)
  • Resistance:1.6813 (channel top), 1.6845 (Jun 6 high), 1.6862 (trend line)

The British Pound edged lower against the US Dollar following a retest of rising trend line support-turned-resistance set from mid-November 2013. Downward-sloping “axis” line support is now at 1.6685, with a break below that targeting the bottom of a falling channel at 1.6623. Alternatively, a daily close above the channel top – now at 1.6813 – targets the June 6 high at 1.6845. This is followed by the trend line at 1.6866.

A corrective pull-up has improved risk/reward parameters and we will attempt to enter short, initially targeting 1.6707.A stop-loss is set to trigger on a daily close above 1.6845. We will book profit on half of the position at the first objective and trail the stop-loss to breakeven.

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

GBP/USD Technical Analysis – Short Position Now in Play

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD ticks higher ahead of the UK GDP data

  2. Forex News

    GBP/USD Technical Analysis: Pound Attempts Recovery

  3. Forex News

    GBP/USD Risks Near-Term Breakout on Strong 2Q U.K. GDP Report

  4. Forex News

    Risk Aversion Builds Pace, Pound Faces Volatility on UK GDP Data

  5. Forex News

    BoE, PBoC, and Federal Reserve Weigh Policy on Key Developments

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!