GBP/USD Technical Analysis: Worst Selloff Since 2008 Persists

By DailyFx | Updated August 21, 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:1.6611, 1.6659, 1.6737

The British Pound continues to push downward against the US Dollar, with prices on pace to yield a seventh consecutive week of losses. A daily close below 38.2% Fibonacci expansion at 1.6533 exposes the 50% level at 1.6470. Alternatively, a reversal above the 23.6% Fib at 1.6611 opens the door for a test of the 14.6% expansion at 1.6659, a barrier bolstered by a falling trend line set from mid-July.

The Pound is on the verge of completing the worst losing streak since the onset of the global financial crisis in 2008. Curiously, this follows a surprisingly hawkish BOE meeting minutes published earlier in the week, hinting the move lower may be a function of inertia rather than fundamentals at this point. We will tactically opt against chasing after a short position here, waiting for an upswing to offer a more attractive setup.

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

GBP/USD Technical Analysis: Worst Selloff Since 2008 Persists

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. GBP/USD keeps highs near 1.5740
    Forex News

    GBP/USD keeps highs near 1.5740

  2. GBP/USD pressuring the top of the range – FXStreet
    Forex News

    GBP/USD pressuring the top of the range – FXStreet

  3. GBP/USD wobbling around 1.5700
    Forex News

    GBP/USD wobbling around 1.5700

  4. GDP in focus for GBP – BTMU
    Forex News

    GDP in focus for GBP – BTMU

  5. GBP/USD Doji On The Daily Denotes Indecision As Range Endures
    Forex News

    GBP/USD Doji On The Daily Denotes Indecision As Range Endures

Trading Center