Forex Strategy: GBP/USD Advances Further Post Hammer Candle
- GBP/USD Technical Strategy: Pending Long
- Hammer formation helped signal bounce
- Daily close above resistance to open further gains
GBP/USD continues its ascent following the Hammer formation on the daily which suggested a shift in sentiment for the pair near 1.6760. While there are some signs of hesitation amongst traders at the psychologically-significant 1.6900 handle, a bearish reversal signal is yet to emerge. A daily close above 1.6900 would suggest the bulls remain in control of prices, and would open up a re-test of the 2014 high near 1.7000.
GBP/USD: Close Above 1.6900 To Open Advance On 2014 High
Daily Chart - Created Using FXCM Marketscope 2.0
Examining intraday price action; the Harami near 1.6900 has failed to find much follow-through. With prices probing above 1.6900 a bearish candlestick pattern is notably absent. This suggests gains may be set to continue over the session ahead.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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