GBP/USD Technical Analysis: Sellers Target 6-Month Support

By DailyFx | July 29, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6909, 1.6832, 1.6721
  • Resistance:1.6969, 1.7053, 1.7176

The British Pound renewed its push lower against the US Dollar having reversed downward as expected after putting in a Hanging Man candle with negative RSI divergence. A daily close below support at a rising trend line set from early February, now at 1.6909, exposes the 38.2% Fibonacci retracement at 1.6832.Alternatively, a bounce above the 23.6% level at 1.6969 clears the way for a challenge of the 14.6% Fib at 1.7053.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal argues against taking up the long side. 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 Target 6-Month Support

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD sitting pretty despite lower CPI’s
    Forex News

    GBP/USD sitting pretty despite lower CPI’s

  2. GBP/USD technical are mixed - Scotiabank
    Forex News

    GBP/USD technical are mixed - Scotiabank

  3. Still solid GDP growth - BNP
    Forex News

    Still solid GDP growth - BNP

  4. GBP/USD extends gains, nears 1.6100
    Forex News

    GBP/USD extends gains, nears 1.6100

  5. USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles
    Forex News

    USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles

Trading Center