GBP/USD May Struggle To Sustain Gains With Bullish Signals Lacking

By DailyFx | August 26, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Absence of Key Reversal Patterns Casts Doubt A Recovery
  • Crawl Under 1.6550 Floor Needed To Open 1.6450

GBP/USD continues to demonstrate resilience above the 1.6550 barrier. Yet an absence of bullish reversal signals casts doubt on the potential for a sustained recovery. A corrective bounce is likely to see selling pressure renewed at the 1.6660 ceiling, while clearance of the 1.6550 hurdle would likely open the March lows near 1.6450.

GBP/USD: Lack of Bullish Signals Casts Doubt On A Recovery

GBP/USD May Struggle To Sustain Gains With Bullish Signals Lacking

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

The four hour chart paints a divergent picture to the daily. A Hammer formation offered an early indication of an intraday recovery for the Pound. A close above former support-turned-resistance at 1.6567 puts the spotlight on the 1.6660 barrier.

GBP/USD: Hammer Offered Sign of Hope To The Bulls

GBP/USD May Struggle To Sustain Gains With Bullish Signals Lacking

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. EUR/USD Breaks Channel from November Low, AUD/USD Skewed by PBoC
    Forex News

    EUR/USD Breaks Channel from November Low, AUD/USD Skewed by PBoC

  2. GBP/USD upside limited by 1.5735 – FXStreet
    Forex News

    GBP/USD upside limited by 1.5735 – FXStreet

  3. EUR/GBP only slightly lower on strong UK eco data – KBC
    Forex News

    EUR/GBP only slightly lower on strong UK eco data – KBC

  4. GBP/USD testing lows around 1.5650
    Forex News

    GBP/USD testing lows around 1.5650

  5. GBP/USD in a neutral zone – UOB
    Forex News

    GBP/USD in a neutral zone – UOB

Trading Center