To receive Ilya’s analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Pending Short
- Support: 1.6676, 1.6625, 1.6573
- Resistance:1.6739, 1.6778, 1.6842
The British Pound may correct higher against the US Dollar after prices produced a Hammer candlestick coupled with positive RSI divergence. Near-term resistance is at 1.6739, 23.6% Fibonacci expansion. A daily close above that initially exposes the 14.6% level at 1.6778. Alternatively, a move below the 38.2% Fib at 1.6676 clears the way for a challenge of the 50% expansion at 1.6625.
Our bias is broadly bearish in line with a break of key trend line support in late July. With that in mind, we will stand aside for now and treat any on-coming gains as corrective, looking for an opportunity to enter short at a more attractive level.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com