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- GBP/USD Technical Strategy: Flat
- Support:1.6929 (23.6% Fib exp.), 1.6906 (trend line)
- Resistance: 1.6996 (38.2% Fib exp.), 1.7050 (50% Fib exp.)
The British Pound paused below the 1.70 figure after a breakneck advance against the US Dollar that took prices to the highest level in nearly five years. Initial resistance is at 1.6996, marked by the 38.2% Fibonacci expansion. A break above that on a daily closing basis exposes the 50% level at 1.7050. Near-term support is at 1.6929, the 23.6% level, with a turn below that targeting a rising trend line set from early April, now at 1.6906.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com