GBP/USD Evening Star Near 1.7170 Warns Of Correction If Confirmed

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Pending Long
  • Evening Star awaiting confirmation on the daily
  • Bullish Engulfing pattern offers early hint of a recovery

GBP/USDcontinues to tease traders near the critical 1.7170 mark with the most recent pullback yielding an Evening Star formation. The pattern suggests a further retreat if confirmed by a successive down-day, which may prove difficult given the proximity of key support levels at 1.7100 and 1.7040.

GBP/USD: Evening Star Awaiting Confirmation

GBP/USD Evening Star Near 1.7170 Warns Of Correction If Confirmed

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

Drilling down to the four hour chart; a Bullish Engulfing pattern hints at an intraday recovery for the Pound. This puts the range-top at 1.7170 in focus, while a close below 1.7100 would shift the immediate risk lower.

GBP/USD: Bullish Engulfing Pattern Puts 1.7100 In Focus

GBP/USD Evening Star Near 1.7170 Warns Of Correction If Confirmed

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

You May Also Like

Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  2. Forex News

    GBP/USD Range in Focus Ahead of U.K. & U.S. 3Q GDP Reports

  3. Forex News

    Sterling between bullish dollar and bearish euro - BBH

  4. Forex News

    US Dollar Targets Fresh Highs versus Euro, but What Could Change?

  5. Forex News

    GBP/USD soft into the closing hours - Scotiabank

Trading Center