GBP/USD Technical Strategy: Flat
Support:1.6691 (“axis” line), 1.6559 (38.2% Fib ret.)
Resistance:1.6850 (trend line), 1.6920 (May 21 high)
The British Pound may have marked a pivotal reversal against the US Dollar after prices cleared rising trend support set from mid-November 2013. The pair is testing “axis” line support at 1.6691, with a daily close below that targeting the 38.2% Fibonacci retracement at 1.6559. Alternatively, a turn back above trend line support-turned-resistance – now at 1.6850 – clears the way for a challenge of the May 21 high at 1.6920.
An actionable short trade-setup is absent for the time being, with prices too close to support to justify entering the trade from a risk/reward perspective. We will continue to stand aside, looking for an actionable selling opportunity to emerge.
Read more here: GBP/USD 05/06/2014