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Talking Points

  • GBP/USD Technical Strategy: Pending Short
  • Harami near resistance suggests further falls ahead
  • Buyers likely to emerge near 1.6660

GBP/USDmay extend its recent declines following the emergence of a Harami candlestick pattern near the 1.6830 resistance level. Given the next noteworthy support level rests at 1.6660, there is some considerable room for a further correction.

GBP/USD: Harami Puts Pressure on Prices

GBP/USD Harami Near Resistance Suggests Further Falls Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

Examining the four hour chart there appears to be some intraday support for the Pound at 1.6770 which may help arrest declines. However, with a bullish reversal signal still absent, the potential for a bounce looks limited at this stage.

GBP/USD: Bullish Signal Missing In Intraday Trade

GBP/USD Harami Near Resistance Suggests Further Falls Ahead

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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