GBP/USD Technical Analysis: Pound Loses its Hold on 1.71

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.7064, 1.6993, 1.6935
  • Resistance:1.7108, 1.7180, 1.7234

The British Pound turned lower as expected against the US Dollar after putting in a Hanging Man candlestick coupled with negative RSI divergence. Near-term support is at 1.7064, the 23.6% Fibonacci retracement. A daily close below that targets the 38.2% level at 1.6993. Alternatively, a turn back above the 14.6% retracement at 1.7108 clears the way for a challenge of the 61.8% Fib expansion at 1.7180.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more attractive opportunity to emerge.

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GBP/USD Technical Analysis: Pound Loses its Hold on 1.71

Daily Chart – Created Using FXCM Marketscope 2.0

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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