GBP/USD Technical Analysis: Selloff Loses Steam at 1.55

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Talking Points:

  • GBP/USD Technical Strategy: Flat

  • Support: 1.5505, 1.5409, 1.5293

  • Resistance: 1.5553, 1.5756, 1.5873

The British Pound has stalled having declined to prove below the 1.55 figure against the US Dollar. Near-term support is at 1.5496, marked by a falling channel floor, with a break beneath that on a daily closing basis exposing the 38.2% Fibonacci retracement at 1.5409. Alternatively, a reversal above the 23.6% Fib expansion at 1.5553 opens the door for a challenge of channel top resistance at 1.5756.

Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.

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GBP/USD Technical Analysis: Selloff Loses Steam at 1.55
GBP/USD Technical Analysis: Selloff Loses Steam at 1.55

Daily Chart - Created Using FXCM Marketscope

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


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