GBP/USD Technical Analysis: Bulls Take Aim at 1.66 Figure

By DailyFx | Updated August 28, 2014 AAA

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6533, 1.6470, 1.6407
  • Resistance:1.6599, 1.6661, 1.6762

The British Pound may be preparing to launch an upswing against the US Dollar following the formation of a bullish Piercing Line candlestick pattern. A daily close above the intersection of the 14.6% Fibonacci retracement and a falling trend line set from mid-July at 1.6599 exposes the 23.6% level at 1.6661. Alternatively, a turn below the 38.2% Fib expansion at 1.6533 clears opens the door for a test of the 50% threshold 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.

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GBP/USD Technical Analysis: Bulls Take Aim at 1.66 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

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