GBP/USD Technical Analysis: Rebound Hinted Above 1.65

By DailyFx | 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

comments powered by Disqus
Related Forex Analysis
  1. USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles
    Forex News

    USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles

  2. GBP/USD up on positive UK GDP - FXStreet
    Forex News

    GBP/USD up on positive UK GDP - FXStreet

  3. GBP/USD gives up GDP-inspired gains
    Forex News

    GBP/USD gives up GDP-inspired gains

  4. GBP/USD reached 1.6050 with GDP help
    Forex News

    GBP/USD reached 1.6050 with GDP help

  5. GBP/USD struggling to rise above 1.6042 - FXStreet
    Forex News

    GBP/USD struggling to rise above 1.6042 - FXStreet

Trading Center