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GBP/USD Eyes 1.7040 in Absence of Bearish Candlesticks Signal

GBP/USD Eyes 1.7040 in Absence of Bearish Candlesticks Signal

2014-05-08 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • GBP/USD Technical Strategy: Longs Preferred
  • Missing reversal signal opens extension to 1.7040
  • IntradayDoji suggests selling pressure near 1.6990

GBP/USD’s modest pullback in recent trading has failed to elicit a key reversal pattern. This may preclude a material correction for the pair and suggests the potential for an extension to the August 2009 high at 1.7040.

GBP/USD: Targeting 1.7040 In Absence of Bearish Signal

GBP/USD Eyes 1.7040 in Absence of Bearish Candlesticks Signal

Daily Chart - Created Using FXCM Marketscope 2.0

Intraday price action on the four hour chart suggests sellers likely remain at the 1.6990 mark. 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 Eyes 1.7040 in Absence of Bearish Candlesticks Signal

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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