GBP/USD Faces Make-Or-Break Moment With Bullish Pattern Near 1.7170

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Pending Long
  • Bullish reversal pattern forming on the daily chart
  • Bearish formations absent in intraday trade

GBP/USD faces a make-or-break session as the pair teases at an upside break of the 1.7170 mark. A freshly formed Bullish Engulfing pattern hints that upside momentum could rebuild. However, given the reversal pattern’s proximity to resistance, a successive up-day and breakout would be required to confirm the signal.

GBP/USD: At A Critical Juncture With Bullish Pattern Near Key Resistance

GBP/USD Faces Make-Or-Break Moment With Bullish Pattern Near 1.7170

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

Drilling down to the four hour chart; A Dark Cloud Cover formation warned of an intraday correction following the test of 1.7170. Given the bearish pattern remains in play, new longs may be best served on a bounce off nearby support at 1.7100.

GBP/USD: Pullback To Offer New Long Entries

GBP/USD Faces Make-Or-Break Moment With Bullish Pattern Near 1.7170

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

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Pound remains in sell mode ahead of UK elections – Investec

  2. Forex News

    GBP/USD bounces-off fresh weekly lows, regains 1.48

  3. Forex News

    Election uncertainty depressing the Pound – Blueprint Capital

  4. Forex News

    GBP/USD losses might remain capped at 1.4800 – FXStreet

  5. Forex News

    GBP/USD trades below hourly 200-MA

Trading Center