GBP/USD Technical Analysis: Rebound Hinted Above 1.65

By DailyFx | Updated August 25, 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: 1.6533, 1.6470, 1.6407
  • Resistance:1.6599, 1.6648-61, 1.6762

The British Pound may be preparing to launch a corrective bounce against the US Dollar after prices put in a Hammer candlestick above the 1.6500 figure. Near-term resistance is at 1.6599, the 14.6% Fibonacci retracement, with a daily close above that exposing the 1.6648-61 area marked by a falling trend line set from mid-July and the 23.6% level. Alternatively, a turn below the 38.2% Fib expansion at 1.6533 clears the way for a challenge of the 50% threshold at 1.6470.

A Hammer candlestick represents indecision and does not amount to an actionable trade signal by itself. Furthermore, the break of trend line support set from February 2014 argues for a broadly bearish bias. With that in mind, we will wait for any on-coming bounce from current levels and treat it as a selling opportunity.

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

GBP/USD Technical Analysis: Rebound Hinted Above 1.65

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EURUSD Drops to 11 Year Low Ahead of ECB, SPX Edges Towards Reversal

  2. Forex News

    GBP/USD Technical Analysis: Waiting to Enter Short Trade

  3. Forex News

    GBP/USD's overnight drop - FXStreet

  4. Forex News

    Session Recap: EUR/USD hits multi-year lows ahead of ECB

  5. Forex News

    GBP/USD breaks key technical support

Trading Center