GBP/USD Technical Analysis: Pound Begins Cautious Recovery

By DailyFx | August 18, 2014 AAA

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 turned higher as expected against the US Dollar after producing a Hammer candlestick coupled with positive RSI divergence. Near-term resistance is at 1.6739, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 14.6% level at 1.6778. Alternatively, a turn below the 38.2% Fib at 1.6676 clears the way for a challenge of the 50% expansion at 1.6625.

Our bias is broadly bearish in line with a break of key trend line support in late July. With that in mind, we will stand aside for now and treat any on-coming gains as corrective, looking for an opportunity to enter short at a more attractive level.

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

GBP/USD Technical Analysis: Pound Begins Cautious Recovery

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  4. GBP/USD Daily Outlook - September 19
    Investing

    GBP/USD Daily Outlook - September 19

  5. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

Trading Center