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GBP/USD Piercing Line Candlestick Pattern Hints At A Bounce

GBP/USD Piercing Line Candlestick Pattern Hints At A Bounce

2014-05-14 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Key support remains at the critical 1.6820 mark
  • Piercing Line pattern hints at a bounce in intraday trade

GBP/USDhas bounced off key support at 1.6820 after posting some modest declines on the back of a Harami candlestick pattern. Given the absence of a bullish reversal signal on the daily and nearby resistance at 1.6900, the pair may struggle to continue its recovery.

GBP/USD: Struggles Below 1.6900 Following Harami Pattern

GBP/USD Piercing Line Candlestick Pattern Hints At A Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

As noted in yesterday’s report the Evening Star pattern on the four hour chart hinted at a drop for GBP/USD during the session. The emergence of a Piercing Line formation near support at 1.6820 now suggests a recovery may be on the cards. Given noteworthy resistance looms at 1.6900, follow-through may prove limited.

GBP/USD: Piercing Line Puts Bounce On The Cards

GBP/USD Piercing Line Candlestick Pattern Hints At A Bounce

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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