GBP/USD Technical Analysis: All Eyes on Trend Line Resistance

By DailyFx | September 01, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6533, 1.6470, 1.6407
  • Resistance:1.6613, 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. A daily close above falling trend line resistance at 1.6613 exposes the 23.6% level at 1.6661. Alternatively, a turn below the 38.2% Fib expansion at 1.6533 opens the door for a test of the 50% barrier at 1.6470.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/USD Technical Analysis: All Eyes on Trend Line Resistance

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD sitting pretty despite lower CPI’s
    Forex News

    GBP/USD sitting pretty despite lower CPI’s

  2. GBP/USD technical are mixed - Scotiabank
    Forex News

    GBP/USD technical are mixed - Scotiabank

  3. Still solid GDP growth - BNP
    Forex News

    Still solid GDP growth - BNP

  4. GBP/USD extends gains, nears 1.6100
    Forex News

    GBP/USD extends gains, nears 1.6100

  5. USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles
    Forex News

    USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles

Trading Center