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GBP/USD Rally Stalls Near 1.7000 As Doji Forms In Intraday Trade

GBP/USD Rally Stalls Near 1.7000 As Doji Forms In Intraday Trade

2014-05-07 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • GBP/USD Technical Strategy: Longs Preferred
  • Hammer finds little-follow through following test of support
  • Doji suggests selling pressure near 1.6990

GBP/USDgave back some of its recent gains prompting the emergence of a Hanging Man formation on the daily. However, the reversal pattern has failed to find follow-through given the strong buying support at the prior breakout point at 1.6870. With a reversal signal now seemingly lacking, the pair may be primed to push towards its August 2009 high at 1.7040.

GBP/USD: Buyers Emerge Near Key Support

GBP/USD Rally Stalls Near 1.7000 As Doji Forms In Intraday Trade

Daily Chart - Created Using FXCM Marketscope 2.0

Intraday price action on the four hour chart suggests sellers are likely sitting at the 1.6990 handle. This is made evident by a Doji formation and suggests longs may be better served on a break higher.

GBP/USD: Rally Stalls At 1.6990

GBP/USD Rally Stalls Near 1.7000 As Doji Forms In Intraday Trade

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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