Forex Strategy: GBP/USD Advances Further Post Hammer Candle
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- GBP/USD Technical Strategy: Hammer continues to favor longs
- Lack of meaningful bearish reversal signal leaves bias to the upside
- Upside target may be offered by the Nov 2009 high at 1.6870
The GBP/USD is heading for its 9th consecutive day of gains which has occurred following the Hammer candlestick formation noted during last week’s report. The break above resistance at 1.6660 is also noteworthy as the pair has continued to climb higher and is now trading at multi-year highs.
The absence of a bearish reversal candle pattern suggests the bulls are still the dominant force here and that the advance may continue. However, following the string of successive up days there may be a fading of momentum, particularly as we approach the next definitive resistance level at 1.6870 (the Nov 2009 high).
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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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