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Talking Points:

• GBP/USD Technical Strategy: Flat

• Support: 1.5189, 1.5042, 1.4860

• Resistance: 1.5337, 1.5498, 1.5699

The British Pound dropped for the sixth consecutive day, producing the longest consecutive day losing streak in 10 months against the US Dollar. Near-term support is at 1.5189, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 1.5042. Alternatively, a reversal above the 38.2% Fib at 1.5337 opens the door for a challenge of the April 29 high at 1.5498.

A short position seems tempting from a purely technical perspective but we will tactically opt to remain on the sidelines. The week ahead features high-profile event risk that may disrupt technical positioning and send the US Dollar broadly lower. We will wait for things to settle before committing to a directional bias.

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Daily Chart - Created Using FXCM Marketscope

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

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