Forex Strategy: GBP/USD Advances Further Post Hammer Candle
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- GBP/USD Technical Strategy: Longs continue to be preferred following Hammer formation
- Lack of meaningful bearish reversal signal leaves bias to the upside
- Selling pressure likely to emerge at 2014 high of 1.6660
The Hammer candlestick on the GBP/USD daily chart as noted in this week’s reports continues to hint at further gains for the pair. We saw several days where sellers were unable to hold prices down around the 1.6250 mark, resulting in several long wicked candles, and suggesting buyers were taking over price action.
The yearly high near 1.6660 is acting as nearby resistance which may act to constrain further advances for the GBP/USD. A bearish reversal candle pattern near the 2014 high may present a selling opportunity which would offer a target of support at 1.6260.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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