GBP/USD Harami Finds Little Follow-Through Near Key Support
- GBP/USD Technical Strategy: Longs Preferred
- Harami on the daily finds little follow-through
- IntradayDoji suggests potential bounce to 1.6995
GBP/USDhas posted a Harami candlestick pattern following a modest pullback in recent trading. However while considered a sign of hesitation from the bears, a more material correction has failed to materialize. With critical support nearby thereby buyers may look to return and push prices back towards the 1.7000 handle.
GBP/USD: Harami Sees Little-Through
Daily Chart - Created Using FXCM Marketscope 2.0
Intraday price action on the four hour chart reveals a Doji formation which suggests sellers are hesitant to push prices below the psychologically-significant 1.6900 handle. In the context of an longer-term uptrend, the pullback may afford new long entries.
GBP/USD: Rally Stalls At 1.6990
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.