DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Narrow range between 1.7100 and 1.1710 remains in play
  • Hanging Manawaits confirmation near key support

GBP/USD continues to keep traders in suspense as the pair wavers within a narrow 70 pip range between 1.7100 and 1.7170. While a Hanging Man warns of a correction, a push lower may be difficult given the close proximity to support. Playing the recent range may offer a better approach than trying to pick a top for the Pound. To this effect the four hour chart offers more timely signals.

GBP/USD: Range Remains In Play

GBP/USD Primed For Push To Range-Top On Hammer Formation

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

Drilling down to the four hour chart; a Hammer formation near 1.7100 heralded an intraday bounce for GBP/USD. With bearish reversal signals absent, the pair could be primed for a push towards the range-top at 1.7170.

GBP/USD: Primed For A Push Higher In Absence of Bearish Signals

GBP/USD Primed For Push To Range-Top On Hammer Formation

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

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  2. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  3. Forex News

    Strategy Video: Am I Over or Under Trading, And How Do I Correct It?

  4. Forex News

    Nonfarm Payrolls coming up: expectations -TDS

  5. Forex News

    EUR/USD regains 1.10, Payrolls eyed

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!