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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Recovery invalidates Harami pattern on the daily
  • Sellers keeping gains capped at 1.6830 for now

GBP/USDhas recovered lost ground with the pair now going for another test of resistance at 1.6830. The bounce-back has negated the Harami pattern, leaving the pair void of bearish candlestick signals and creating a neutral technical bias for the Pound.

GBP/USD: Recovers To Resistance

GBP/USD Recovery Leaves Bearish Candlestick Patterns Lacking

Daily Chart - Created Using FXCM Marketscope 2.0

Examining the four hour chart; the Hammer formation near 1.6740 provided an indication that the bears lost steam in recent trading. Similarly to the daily, we’re yet to see a key reversal candlestick pattern emerge, which would signal a potential correction.

GBP/USD: Hammer Foreshadowed Return of The Bulls

GBP/USD Recovery Leaves Bearish Candlestick Patterns Lacking

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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