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- GBP/USD Technical Strategy: Flat
- Support:1.7108, 1.7064, 1.6993
- Resistance:1.7180, 1.7234, 1.7322
The British Pound may be topping against the US Dollar after prices produced a Hanging Man candlestick coupled with negative RSI divergence. Near-term support is at 1.7108, the 14.6% Fibonacci retracement. A daily close below that targets the 23.6% level at 1.7064. Alternatively, a turn above the 61.8% Fib expansion at 1.7180 clears the way for a challenge of the 76.4% threshold at 1.7234.
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.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com