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Talking Points

  • GBP/USD Technical Strategy: Shorts Preferred
  • Absence of Key Reversal Patterns Keeps Risk Lower
  • Crawl Under 1.6550 Floor Needed To Open 1.6450

GBP/USD is recovering lost ground in Asian trading, yet a sustained advance may prove difficult with a void of reversal patterns on the radar. 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 Recovery Endangered By Absence Of Bullish Reversal Patterns

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 may be offering an early indication of a bounce over the remainder of the session. A close above former support-turned-resistance at 1.6567 would be required to open the 1.6660 ceiling.

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

GBP/USD Recovery Endangered By Absence Of Bullish Reversal Patterns

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

By David de Ferranti, Currency Analyst, DailyFX

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