GBP/USD Technical Analysis: Worst Selloff Since 2008 Persists

By DailyFx | 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

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD Dark Cloud Cover Delivers Further Declines
    Forex News

    GBP/USD Dark Cloud Cover Delivers Further Declines

  2. GBP/USD is still hopeful before UK GDP
    Forex News

    GBP/USD is still hopeful before UK GDP

  3. GBP/USD Buyers at the 1.60 Handle
    Investing

    GBP/USD Buyers at the 1.60 Handle

  4. Asian recap: Aussie and Yen run the show, majors playing second fiddle
    Forex News

    Asian recap: Aussie and Yen run the show, majors playing second fiddle

  5. Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms
    Forex News

    Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms

Trading Center