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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • The Hang Seng Index looks set to extend gains beyond the 30,000 mark, hitting a fresh 20-month high. Will it succeed?
  • The US Dollar may be finding a turning point against ASEAN currencies as smaller fiscal stimulus bets, soft earnings risk and Covid cases translate into some capital flight from equities. Get your #ASEAN currencies market update from @ddubrovskyFX here:
  • RT @FxWestwater: Australian Dollar Forecast: Jobs Report Fails to Inspire $AUDUSD Link:
  • The Nasdaq 100 index advanced 1.97% to an all-time high of 13,457, led by Alphabet (+5.36%), Amazon (+4.57%) and Microsoft (+3.65%).
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6% Expected: 6.7% Previous: 6.8%
  • 🇦🇺 Full Time Employment Chg (DEC) Actual: 35.7K Previous: 84.2K
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6 Expected: 6.7% Previous: 6.8%
  • 🇦🇺 Employment Change (DEC) Actual: 50K Expected: 50K Previous: 90.0K
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Heads Up:🇦🇺 Full Time Employment Chg (DEC) due at 00:30 GMT (15min) Previous: 84.2K
Forex Strategy - GBP/USD Bullish Engulfing Pattern Hints At Bounce

Forex Strategy - GBP/USD Bullish Engulfing Pattern Hints At Bounce

David de Ferranti, Currency Analyst

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

Talking Points

  • GBP/USD Technical Strategy: sidelines preferred
  • Range between 1.6610 and 1.6765 on 4 hour remains intact
  • Shooting Star warns on daily warning of declines

The GBP/USD four hour chart has posted a Bullish Engulfing candlestick formation which may be hinting at bounce for the pair in the session ahead. The pattern is made more noteworthy as it has appeared near the psychologically-significant 1.6600 level.

However, there appears to have been little upside momentum following the bullish reversal signal, as such a bounce may fizzle, particularly given resistance looms overhead near 1.6640 (the 23.6% Fib Retracement level).

Turning to the daily chart, a Shooting Star formation continues to warn of a drop for the Pound over the near-term. This comes in addition to a shift in the trend (signaled by the 20 SMA). A break below strong buying support at 1.6600 would be needed before looking at new short entries.

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

Forex_Strategy_-_GBPUSD_Bullish_Engulfing_Pattern_Hints_At_Bounce_body_Picture_3.png, Forex Strategy - GBP/USD Bullish Engulfing Pattern Hints At Bounce

4 Hour Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_GBPUSD_Bullish_Engulfing_Pattern_Hints_At_Bounce_body_Picture_2.png, Forex Strategy - GBP/USD Bullish Engulfing Pattern Hints At Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_GBPUSD_Bullish_Engulfing_Pattern_Hints_At_Bounce_body_Picture_1.png, Forex Strategy - GBP/USD Bullish Engulfing Pattern Hints At Bounce

Weekly Chart - Created Using FXCM Marketscope 2.0

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

Contact and follow David on Twitter: @Davidde


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.