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- GBP/USD Technical Strategy: Flat
- Support: 1.6469-89 (61.8% Fib ret., trend line), 1.6386 (76.4% Fib ret.)
- Resistance: 1.6536 (50% Fib ret.), 1.6604 (38.2% Fib ret.)
The British Pound continues to hold above support marked by a rising trend line set from mid-November against the US Dollar. This barrier is reinforced by the 61.8% Fibonacci retracement at 1.6469, with a break downward initially exposing the 76.4% level at 1.6386. Alternatively, a daily close above resistance at 1.6536 – the 50% Fib – targets the 38.2% retracement at 1.6604.
Risk/reward considerations argue against entering short with prices wedged tightly between near-term up- and down-side technical barriers. With that in mind, we will continue to stand aside until a more attractive trade setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com