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Talking Points

  • GBP/USD Technical Strategy: Shorts Preferred
  • Harami Forming, Yet Awaits Close of Current Candle
  • Leap Above 1.6660 Required To Suggest A Recovery

GBP/USD is showing tentative signs of life as a Harami pattern awaits confirmation from the close of the current candle. If validated by a climb over the 1.6660 hurdle and ensuing up-day the reversal pattern could suggest a corrective bounce. However, against the backdrop of a sustained downtrend some a more sustained recovery may warrant some doubt.

GBP/USD: Awaiting Candle Close For Bullish Signal

GBP/USD Harami Awaiting Confirmation To Suggest Sustained Recovery

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

The four hour chart tells a similar narrative to the daily. A Bullish Engulfing formation is being etched out yet awaits the close of the current candle to confirm the reversal signal. Some skepticism over further gains may also be warranted given the 1.6660 barrier looms nearby.

GBP/USD: Bullish Pattern Being Etched Out In Intraday Trade

GBP/USD Harami Awaiting Confirmation To Suggest Sustained Recovery

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

By David de Ferranti, Currency Analyst, DailyFX

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