GBP/USD Technical Analysis: Waiting to Sell on Rebound

By DailyFx | Updated August 06, 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: 1.6818-22, 1.6703, 1.6587
  • Resistance:1.6940, 1.6960, 1.7048

The British Pound fell as expected against the US Dollar after putting in a Hanging Man candlestick with negative RSI divergence. A bullish Piercing Line setup above support in the 1.6818-22 area, marked by the February 17 high and the 38.2% Fibonacci retracement, now hints a correction upward is ahead. A daily close above trend line support-turned-resistance at 1.6940 exposes the 23.6% level at 1.6960. Alternatively, a reversal below support clears the way for a challenge of the 50% Fib at 1.6703.

We see the medium-term trend bias as bearish considering last week’s break of rising trend support set from February. With that in mind, we will look at any bounce from here as an opportunity to get short at a more attractive level rather than a trade-able rally.

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

GBP/USD Technical Analysis: Waiting to Sell on Rebound

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. GBP/USD slumps to 1.5950
    Forex News

    GBP/USD slumps to 1.5950

  2. GBP/USD retreats from above 1.6000
    Forex News

    GBP/USD retreats from above 1.6000

  3. GBP/USD trading slightly below 1.6000 - FXStreet
    Forex News

    GBP/USD trading slightly below 1.6000 - FXStreet

  4. GBP/USD expected to move towards 1.5875 - UOB Group
    Forex News

    GBP/USD expected to move towards 1.5875 - UOB Group

  5. GBP/USD capped at 1.6000
    Forex News

    GBP/USD capped at 1.6000

Trading Center