GBP/USD Pushes Off Support As Piercing Line Pattern Forms
- GBP/USD Technical Strategy: Longs Preferred
- Harami on the daily finds little follow-through
- Piercing Line pattern forming near key support
GBP/USDhas bounced off key support at 1.6820 after posting some modest declines on the back of a Harami candlestick pattern. The recovery appears to be forming a Piercing Ling pattern which would be indicative of bullish momentum recovering. A push back above 1.6900 would be seen as an opportunity to enter new long positions with a target offered by 1.6995.
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 1.6820/30 mark. In the context of a 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
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