- GBP/USD Strategy: Flat
- Pound Begins Recovery as Expected
- Waiting to Sell Once Bounce Fizzles
The British pound turned higher against the US dollar as expected after prices put in a Bullish Engulfing candlestick pattern coupled with positive RSI pergence. From here, a push above the 23.6% Fibonacci retracement at 1.5185 exposes the 38.2% level at 1.5568. Alternatively, a reversal back below the 14.6% retracement at 1.4948 targets the 23.6% Fib expansion at 1.4561.
The overall GBP/USD trend continues to look bearish. With that in mind, we will treat any further gains as corrective and look to them as an opportunity to establish a short position at more attractive levels once the upswing is exhausted.
GBP/USD Candlestick Analysis