GBP/USD Technical Analysis: Sellers Overcome 1.70 Figure

By DailyFx | Updated July 24, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6969, 1.6896, 1.6832
  • Resistance:1.7053-62, 1.7176, 1.7274

The British Pound dropped the lowest level in a month against the US Dollar having turned lower as expected after showing a Hanging Man candlestick with negative RSI divergence. A break below the 23.6% Fibonacci retracement at 1.6969 on a daily closing basis initially exposes a rising trend line set from early February, now at 1.6896. Resistance is in the 1.7053-62 area, marked by the 14.6% Fib and the June 19 high. A reversal above that opens the door for a test of 1.7176, the July 2 top.

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: Sellers Overcome 1.70 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. GBP/USD toying with 1.5700
    Forex News

    GBP/USD toying with 1.5700

  2. GBP/USD Outside Day Reversal; Bigger Resistance Slightly Higher
    Forex News

    GBP/USD Outside Day Reversal; Bigger Resistance Slightly Higher

  3. GBP/USD falls to test the 1.5675 again
    Forex News

    GBP/USD falls to test the 1.5675 again

  4. Japanese Yen Remains an Attractive Sell Opportunity until this Changes
    Forex News

    Japanese Yen Remains an Attractive Sell Opportunity until this Changes

  5. British Pound Forecast to Continue Declines versus USD
    Forex News

    British Pound Forecast to Continue Declines versus USD

Trading Center