News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy: GBP/USD Absence of Reversal Signal Favors Upside

Forex Strategy: GBP/USD Absence of Reversal Signal Favors Upside

David de Ferranti, Currency Analyst

To receive David’sanalysis directly via email, please SIGN UP HERE

Talking Points

  • 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.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_GBPUSD_Absence_of_Reversal_Signal_Favors_Upside_body_Picture_1.png, Forex Strategy: GBP/USD Absence of Reversal Signal Favors Upside

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

New to FX? START HERE

For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES