DailyFX.com -

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

Talking Points:

  • GBP/USD Technical Strategy: Pending Short
  • Support: 1.6676, 1.6625, 1.6573
  • Resistance:1.6739, 1.6778, 1.6842

The British Pound moved aggressively lower against the US Dollar, issuing the largest daily drop since January and sinking to the lowest level in four months. Near-term support is at 1.6676, 38.2% Fibonacci expansion. A daily close below that initially exposes the 50% level at 1.6625. Positive RSI divergence warns a turn higher may be around the corner however. A move above the 23.6% Fib at 1.6739 clears the way for a challenge of the 14.6% expansion at 1.6778.

Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

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

GBP/USD Technical Analysis: Bounce to Follow Deep Plunge?

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD Technical Analysis: Digesting Losses Above 1.56

  2. Forex News

    Trading Video: Greece Panic Eases as IMF Payment in Arrears, Risk Still Stalking

  3. Forex News

    GBP/USD: Weakness persists, breaks below 1.57

  4. Forex News

    Would Central Banks Step in If Stocks Tumble, Could They Stop It?

  5. Forex News

    GBP/USD Consolidates at Support

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!