GBP/USD Technical Analysis: Passing on Long Trade Setup
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Talking Points:
GBP/USD Technical Strategy: Flat
Support: 1.6217, 1.6051, 1.5950
Resistance:1.6320, 1.6486, 1.6621
The British Pound moved higher against the US Dollar as expected, reclaiming a foothold above the 1.62 figure. A daily close above the 23.6% Fibonacci retracementat 1.6320 exposes the 1.6459-86 area marked by the March 24 low, a falling trend line and the 38.2% level. Alternatively, a turn below 14.6% Fib at 1.6217 opens the door for at test of the September 10 low at 1.6051.
An argument in favor of a long trade can be made from a technical perspective but the looming Scottish Independence referendum injects an uncomfortable degree of event risk for such a trade. With that in mind, we will remain flat for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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