GBP/USD Primed For Push Higher On Daily Close Above 1.7000

By DailyFx | June 19, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Daily close above 1.7000 needed to suggest conviction amongst bulls
  • Absence of bearish reversal pattern indicates potential for gains

GBP/USD may be primed to run on its August 2009 high if the pair can close above the critical 1.7000 handle on the daily. While a Doji formation signaled some signs of hesitation from traders, there’s an absence of bearish reversal patterns which further suggests the potential for a push higher.

GBP/USD: Doji Offers Sign of Hesitation By The Bulls

GBP/USD Primed For Push Higher On Daily Close Above 1.7000

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to the four hour chart, the deliberation amongst traders shy of the 1.7000 mark is made further evident by several short body candles. While a Hanging Manformation offered a signal of a potential pullback, it failed to find confirmation from an ensuing down-period. This leaves bearish reversal patterns absent at this stage, which precludes a correction.

GBP/USD: Hanging Man Fails To Find Confirmation

GBP/USD Primed For Push Higher On Daily Close Above 1.7000

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market 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.

comments powered by Disqus
Related Forex Analysis
  1. Markets Brace for More Volatility on ECB TLTRO, Scotland Referendum
    Forex News

    Markets Brace for More Volatility on ECB TLTRO, Scotland Referendum

  2. USD/JPY unstoppable; 109.00 within reach
    Forex News

    USD/JPY unstoppable; 109.00 within reach

  3. British Pound: Scottish Vote is Close and FX Traders are Nervous
    Forex News

    British Pound: Scottish Vote is Close and FX Traders are Nervous

  4. EUR/USD on mend, but sky is still clouded
    Forex News

    EUR/USD on mend, but sky is still clouded

  5. Asia Recap: Focus shifted to Scottish vote
    Forex News

    Asia Recap: Focus shifted to Scottish vote

Trading Center