Forex Strategy: GBP/USD Absence of Reversal Signal Favors Upside
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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 technical bias remains to the upside in the absence of a bearish reversal candlestick pattern. However, there are signs of fading upside momentum given the inability of the pair to set a new high for the year since its initial break in early February. The bullish advance and setting of a fresh multi-year high followed the formation of a Hammer candlestick formation of the daily near key support at 1.6260.
A daily close above nearby resistance at 1.6770 would further support a bullish bias and likely open up an advance towards the November 2009 higher near 1.6870. Noteworthy fundamental event risk lies ahead this week for the Pound with the Bank of England rate decision set to take place later in the week. Check the economic calendar for key upcoming economic data.
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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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