GBP/USD Technical Analysis: Pivotal Trend Line Under Fire

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6914, 1.6832, 1.6721
  • Resistance:1.6969, 1.7053, 1.7176

The British Pound continues to edge downward against the US Dollar having marked a top as expected after showing a Hanging Man candle with negative RSI divergence. Near-term support is at a rising trend line set from early February, now at 1.6914. A break below that on a daily closing basis exposesthe 38.2% Fibonacci retracement at 1.6832.Alternatively, a reversal above the 23.6% level at 1.6969opens the door for a test ofthe 14.6% Fib at 1.7053.

Risk/reward considerations argue against entering short with prices trading in close proximity to 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: Pivotal Trend Line Under Fire

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. Recap: US Dollar gives up ahead Thanksgiving; pullback or profit taking?
    Forex News

    Recap: US Dollar gives up ahead Thanksgiving; pullback or profit taking?

  2. GBP/USD eyes a close on 1.58 handle
    Forex News

    GBP/USD eyes a close on 1.58 handle

  3. After consolidation phase, the GBP/USD attacks 1.5800 again
    Forex News

    After consolidation phase, the GBP/USD attacks 1.5800 again

  4. Bullish US Dollar Undermined by Shaky October Durable Goods Orders
    Forex News

    Bullish US Dollar Undermined by Shaky October Durable Goods Orders

  5. GBP up 0.2% on open – Scotiabank
    Forex News

    GBP up 0.2% on open – Scotiabank

Trading Center