- 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
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
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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