GBP/USD Technical Analysis: Key Channel Support Broken

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• GBP/USD Technical Strategy: Flat

• Support: 1.5322, 1.5180, 1.5117

• Resistance: 1.5426, 1.5551, 1.5601

The British Pound broke downward against the US Dollar as expected after putting in a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci expansion at 1.5322 exposes the 23.6% level at 1.5180. Alternatively, a reversal above channel floor support-turned-resistance at 1.5422 clears the way for a test of the 38.2% Fib retracement at 1.5551.

We entered long GBPUSD at 1.5373and subsequently booked profit on half of the position. The remainder of the trade has now closed at the breakeven level. Prices are now too close to support to justify entering short from a risk/reward perspective and we will stay flat for now.

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

GBP/USD Technical Analysis: Key Channel Support Broken

Daily Chart - Created Using FXCM Marketscope

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

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.